Platts amends specification reflected in Diesel 10ppm UK Cargoes CIF NWE assessment

S&P Global Platts has amended the methodology reflected in its 10ppm UK Cargoes CIF NWE assessment (Code: AAVBH00), effective Sept. 1, 2020 to reflect UK specification ultra-low sulfur diesel.

The assessment previously reflected French specification diesel. The Diesel 10ppm UK Cargoes CIF NWE assessment (AAVBH00) reflects the value of UK specification diesel delivered into UK ports. The assessment reflects both bids, offers and trades reported through the Market on Close process, alongside indications gathered from the market as well as relevant information around freight and flows for delivery into typical UK discharge ports.

Effective Sept. 1, 2020, Platts has also started publishing the Diesel 10ppm UK Cargoes CIF NWE - Original (French) Spec assessment, reflecting French specification and the same methodology applied in Diesel 10ppm UK Cargoes CIF NWE assessment (AAVBH00) until Aug. 31, 2020. This new assessment is databased under the code AUKDA00 and will be published between Sept. 1, 2020 and Dec. 31, 2021. The assessment is derived as a freight net-forward to the ULSD 10 ppm Cargoes CIF NWE (AAVBG00) assessment based on the incremental freight differential to typical UK ports and using daily freight rates published in the Platts Clean Tankerwire. The freight net-forward assumes a basket of loadports in the Baltics, Scandinavia and in the Amsterdam-Rotterdam-Antwerp Area.

The change follows a decision note, published on June 30 and available here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/063020-platts-to-reflect-uk-spec-in-diesel-uk-cargoes-cif-nwe-assessment-from-sept-1. A proposal note was published on June 3 following a consultation phase and is available here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/060320-platts-proposes-to-reflect-uk-specification-in-its-diesel-10ppm-uk-cargoes-cif-nwe-assessment-from-oct-1-2020. Platts initiated the consultation following an announcement from the British Standards Institution that introduced a concentration limit of 10,000 max for particles of more than 4 microns in diameter per ml in the UK specification of ultra-low sulfur diesel (EN 590), effective from April 30, 2020.

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