Platts to launch Tupi FOB Brazil assessment

Adding to its suite of FOB assessments for significant Latin America crude oil grades, Platts will launch an assessment of Tupi FOB Brazil Oct. 11, 2021.

This new FOB value complements Platts' existing Tupi DES Qindao assessment (symbol: LUQDA00), which reflects the value of 1 million-barrel cargoes discharged from a VLCC and delivered to China, three months forward.

Tupi production is approaching 1 million b/d, according to the Brazil National Petroleum Agency, and the grade has become the most prevalent Brazil crude export.

Platts Tupi FOB assessment will reflect 2 million-barrel VLCC cargoes loading 30-60 days forward via ship-to-ship transfer at Porto do Acu. Platts would consider market information for cargoes loading at other locations in Brazil and Uruguay, normalized to reflect loading economics at Porto do Acu.

Market feedback indicates that most Tupi is sold on a delivered basis, but given the numerous destinations emerging for the grade, an FOB assessment would provide valuable pricing insight. In the absence of market information on an FOB basis, Platts will consider bids, offers, and trades on a delivered basis for the Tupi FOB Brazil assessment. Platts will consider prevailing freight rates, market structure, and other factors in converting delivered market information to an FOB basis. In addition, Platts will consider the price movements of comparable grades in the region in making the Tupi FOB Brazil assessment.

Like Platts other Latin America crude assessments, Tupi FOB Brazil will be published as an outright value and as a differential to the 30-60 day Dated Brent, ICE Brent, and NYMEX WTI strips.

Please send any feedback or questions to Americas_crude@spglobal.com and pricegroup@spglobal.com. 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 to the public upon request.