SUBSCRIBER NOTE: Platts to amend 2018 freight netbacks for Black Sea crude

Effective October 1, 2018, S&P Global Platts will amend the Worldscale rates used to calculate freight netbacks for its assessments of FOB Black Sea crude oil netbacks.

The amendment will affect the following five assessments: Urals (ex-Novorossiisk) 80,000 mt, Urals (ex-Novorossiisk) 140,000 mt, CPC Blend FOB 80,000 mt, CPC Blend FOB 140,000 mt, and Azeri Light FOB Supsa (80,000 mt).

The amendment follows the release of Worldscale Association circular number 13 on September 4, 2018, which revised the $/mt flat rates for all voyages transiting the Bosporus.

The Worldscale Association said it was revising the flat rates "in light of recent information regarding the introduction of new Escort Towage requirements for vessels transiting the Bosporus Strait".

Platts published a subscriber note detailing the annual Worldscale rates to be used in 2018 for FOB Black Sea netbacks in the following three subscriber notes published on December 22, 2017:

Azeri Light: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/122217-fr eight-netback-for-azeri-light-fob-supsa-in-2018

CPC Blend: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/122217-fr eight-netback-for-cpc-blend-fob-cpc-terminal-in-2018

Urals Med: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/122217-fr eight-netback-for-urals-fob-novorossiisk-in-2018

In light of the changes highlighted in the circular, Platts will revise its annual Worldscale flat rates for the following assessments and voyages.

The flat rate used to calculate the netback formula for Azeri Light 80,000 mt FOB Supsa will be $6.57/mt.

The flat rate used to calculate the netback formula for CPC Blend FOB CPC Terminal and CPC Blend 80,000 mt FOB CPC Terminal will be $7.36/mt. The estimated port costs applicable to Novorossiisk will be deducted and CPC terminal costs will be added in freight calculations.

The flat rate used to calculate the netback formula for Urals FOB Novorossiisk and Urals 80,000 mt FOB Novorossiisk will be $7.36/mt.

Please send all comments or questions to Europe_Crude@spglobal.com and pricegroup@spglobal.com.

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