Platts opens consultation on Mediterranean crude oil assessment date ranges

As part of its commitment to open and transparent pricing and product specifications, S&P Global Platts would like to invite feedback on its Mediterranean crude oil assessment date ranges for Azeri Light, CPC Blend and Saharan Blend.

In the physical North Sea, Urals, Mediterranean and West African crude oil markets, Platts calculates outright values by applying an assessed differential versus the forward Dated Brent market.

Platts uses a variety of different forward Dated Brent strips to determine the outright value of different crudes pricing relative to the forward Dated Brent market. These strips vary in length and pricing period depending on the crude market being assessed.

Platts currently assesses Azeri Light loading 10-30 days forward, applying the differential to the Platts BTC Dated strip. The assessment currently reflects 650,000-barrel cargoes of Azeri Light loading at the Turkish port of Ceyhan for delivery into the Mediterranean (BTC CIF Augusta). Azeri Light cargoes loading from both Ceyhan and the Black Sea port of Supsa may be included in this assessment, with Supsa volumes adjusted back to Ceyhan quality.

CPC Blend and Saharan Blend are currently assessed loading 10-25 days forward, applying the differential to the Platts Mediterranean Dated strip. The CPC Blend assessment reflects 85,000 mt cargoes loading from the Black Sea CPC Terminal north of Novorossiisk for delivery into the Mediterranean (CIF Augusta). The Platts CPC Blend CIF Augusta assessment currently reflects cargoes between 80,000 mt and 140,000 mt, normalized back to the 85,000 mt standard.

The Saharan Blend assessment reflects 600,000-barrel cargoes of Saharan Blend loading FOB from the Algerian ports Skikda and Arzew. Larger cargoes may be considered in the assessment, but are currently normalized back to 600,000 barrels.

Platts understands some monthly trading activity on these grades has shifted further ahead in time in order to capture the growing Asian arbitrage flow, as well as to take into account the increased long-haul crude purchasing options for local Mediterranean refineries.

Platts would like to invite feedback on the date ranges that capture these evolving dynamics.

Platts reviews all methodologies regularly to ensure they continue to reflect spot traded values for the markets being assessed. Therefore, Platts would also like to invite feedback on all other aspects of its Mediterranean sweet crude methodology, such as the cargo volume sizes which are reflected.

Please send all comments, feedback and questions to europe_crude@spglobal.com and pricegroup@spglobal.com by Friday, October 16, 2020.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.