Platts to exclude Russian-origin product from European 1%S FO and 0.5%S MF assessments Sept. 1

Effective Sept. 1, 2022, Platts will no longer reflect Russian-origin product in its European 1%S Fuel Oil and 0.5%S Marine Fuel assessments.

The decision by Platts, part of S&P Global Commodity Insights, follows a review into the continued inclusion of Russian-origin material in its European fuel oil and feedstock assessments, announced in a subscriber note published April 19, and available here:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/041922-s-p-global-seeks-feedback-on-russian-product-in-platts-european-fuel-oil-feedstocks-assessments

Feedback gathered from the market, as well as observed market activity in recent weeks, has shown the majority of the market share in the 1%S fuel oil and 0.5%S marine fuel European markets as being non-Russian origin.

In recent months, Platts has observed that an increasing number of market participants have been restricting material from Russia, in part or entirely, in their spot fuel oil trading activity.

In addition, the EU's oil embargo on Russia will take a heavy toll on Europe's oil supply and fuel flows and will increase Europe's dependency on alternative sources of supply to meet residual fuel oil demand within the region.

Although Russian product continues to flow to the European market for certain fuel oil grades, Platts understands that it is not trading on the same basis as product from other origins in the spot market, and that there is a difference in value between Russian and non-Russian product.

Platts published a clarification note on June 23 around the standards for assessments that exclude Russian-origin material which can be found here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/062322-platts-clarifies-standards-for-assessments-that-exclude-russian-origin-material

The calculations for the associated freight netback and freight netforward European fuel oil, marine fuel and feedstocks assessments will remain unchanged as of September 1. However, Platts will continue to monitor prevailing trade flows and review the plausible load ports in these calculations, including the continued inclusion of Russian load ports.

As a result, with effect from Sept. 1, the Platts assessments listed below will exclude Russian-origin product. Bids, offers and trades reported during the Platts Market on Close assessment process for these assessments will therefore reflect non-Russian origin product with effect from the same date.

Assessment CODE Mavg

FO 1%S CIF Med Cargo PUAAJ00 PUAAJ03

FO 1%S FOB Med Cargo PUAAK00 PUAAK03

FO 1%S CIF NWE Cargo PUAAL00 PUAAL03

FO 1%S FOB NWE Cargo PUAAM00 PUAAM03

FO 1%S FOB Rdam Barge PUAAP00 PUAAP03

FOB Rotterdam Marine Fuel 0.5% Barge PUMFD00 PUMFD03

CIF Mediterranean Marine Fuel 0.5% Cargo MFCMM00 MFCMM03

FOB Mediterranean Marine Fuel 0.5% Cargo MFFMM00 MFFMM03

Platts will continue to review the role of Russian-origin product in its high sulfur fuel oil and feedstock assessments but has noted more mixed market feedback and supply and demand fundamentals in these markets.

Please send additional feedback, questions or comments to europe_products@spglobal.com and pricegroup@spglobal.com.

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