SUBSCRIBER NOTE: Platts updates decision to amend demurrage formula for Black Sea crude FOB netback assessments

In the wake of new information, S&P Global Platts is updating its decision to amend how demurrage is reflected in the calculation of its crude oil assessments from the Black Sea to reflect delay time through the Turkish Straits.

Platts understands that general market practice is to allow for one day journey through the Turkish Straits each way, with only time spent in excess of 24 hours used in the final calculation of demurrage.

This updates a decision published August 9 and available here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/080919-platts-to-amend-demurrage-formula-for-black-sea-crude-fob-netback-assessments

A proposal was originally published July 4 and is available here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/070419-platts-proposes-to-amend-demurrage-formula-for-black-sea-crude-fob-netback-assessments

With this change, Platts will reflect demurrage time through the Turkish Straits rather than full transit time.

For example, if the journey through the Turkish Straits was assessed at four days each for both northbound and southbound voyages, Platts Black Sea netback calculations would account for three days of demurrage each way.

Similarly, if the journey through the Turkish Straits was assessed at one day each for both northbound and southbound voyages, Platts Black Sea netback calculations would demonstrate no additional demurrage calculation.

This change will impact the following assessments:

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