SUBSCRIBER NOTE: Platts to change CIF, FOB NWE diesel netbacks

Due to an observed change in market flows, in which larger cargoes and vessels are increasingly supplying the market, and following supportive industry feedback, Platts has decided to raise the freight cargo size used to calculate its CIF and FOB Northwest European diesel netbacks.

The change follows a proposal subscriber note published on July 26, 2016, and a separate note published today explaining Platts' decision to raise the volume used in Northwest European diesel cargo assessments from 20,000 mt plus/minus 10% to 30,000 mt plus/minus 10%.

With effect from January 3, 2017, Platts will use its Baltic-UK Continent 30,000 mt clean freight rate (Platts code: TCAFLSZ) instead of the UK Continent-UK Continent 20,000 clean freight rate (Platts code: PFALYSZ), as published in the Platts Clean Tankerwire.

The following netbacks will be affected: CIF NWE (Le Havre) diesel cargoes (AAWZC00), CIF UK diesel cargoes (AAVBH00), FOB ARA diesel cargoes (AAVBF00), FOB NWE (Le Havre) diesel cargoes (AAWZD00).

Global diesel cargo sizes have increased in recent years with larger diesel exports from Russia and the US, and the commissioning of new refineries in the Middle East geared to diesel production. For example, the amount of 30,000 mt cargoes exported from Russia's Primorsk terminal has gone from five per month at the start of 2015 to more than 15 now, while 20,000 mt cargoes have reduced from 20 to fewer than 10, data from Platts and trading sources showed.

Please send any comments and queries to europe_products@platts.com and pricegroup@platts.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 upon request.