Platts clarifies publication guidelines for pre-program Azeri Light, CPC Blend and Urals MOC bids

S&P Global Platts would like to restate its guidelines regarding bidding activity over dates that are not covered by the relevant loading program ('pre-program') that is eligible for publication in the Urals and Mediterranean crude Market On Close assessment processes.

Platts publishes firm bids for Azeri Light cost, insurance and freight (CIF) Augusta, CPC Blend CIF Augusta, Urals CIF Rotterdam and Urals CIF Augusta cargoes ahead of the release of the full corresponding month-ahead loading program.

These instances typically occur when the 10-30 day forward assessment range for Azeri Light and CPC Blend, or 10-25 days forward for Urals CIF Rotterdam and Urals CIF Augusta, stretches beyond the published loading schedule dates.

Platts understands the timing and process of program release is different for each of these crudes.

For Azeri Light, a month-ahead loading program from the Turkish port of Ceyhan is circulated around the 8th of the month. It is followed a few days later by load details from the Georgian port of Supsa.

For CPC Blend, a provisional month-ahead program is released around the 11th of the month, followed by a finalized program issued at the start of the month it relates to.

For Urals, loading details are released in installments, with the early export program covering the first five days of the coming month released near the 16th, followed by details for the first ten days around the 19th, and then the full month-ahead schedule from the 24th.

According to programs collected by Platts, Azeri Light has loaded an average of over 21 million barrels per month through the last five years. With a typical cargo size of 650,000 barrels, that represents an expected more than 30 cargoes each month.

For CPC Blend, that same period has seen an average of nearly 4.9 million mt load each month - the equivalent of around 38 million barrels. Each month sees a mixture of Aframax and Suezmax cargoes.

For Urals loading from the Baltic ports of Primorsk and Ust-Luga, an average of over 5.5 million mt has loaded each month, representing 55 Aframax cargoes of 100,000 mt each.

For Urals loading from the Black Sea port of Novorossiisk, around 1.7 million mt has loaded each month. The program is made up of Aframax cargoes of 80,000 mt and Suezmax cargoes of 140,000 mt.

Loading volumes for these specific crude grades are deemed to be sufficiently liquid, ratable and with a suitable degree of transparency, to ensure that bids can be supplied in the pre-program period.

In the Azeri Light, CPC Blend, Urals CIF Rotterdam, and Urals CIF Augusta markets, Platts also reflects bids where buyers are willing to receive pre-loaded oil, meaning a cargo which has loaded before the dates being bid. Platts does not reflect offers of pre-loaded oil. Sellers may supply a cargo that has loaded prior to the specific dates being bid, provided it meets all other Platts guidelines and the seller covers any additional costs incurred by the buyer.

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