Platts excludes Russian-origin product from European 3.5%S FO, feedstocks assessments

Effective Oct. 3, 2022, Platts no longer reflects Russian-origin product in its European 3.5%S Fuel Oil and feedstock assessments.

The decision by Platts, part of S&P Global Commodity Insights, follows a review into the continued inclusion of Russian-origin material in its European fuel oil and feedstock assessments, announced in a subscriber note published April 19, and available here:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/041922-s-p-global-seeks-feedback-on-russian-product-in-platts-european-fuel-oil-feedstocks-assessments

Feedback gathered from the market, as well as observed market activity in recent weeks, has shown a significant move away from Russian-origin material in the spot market.

A subsequent decision note was published Aug. 25 and is available here:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/082522-platts-to-exclude-russian-origin-product-from-european-35s-fo-feedstocks-assessments

Platts has observed in recent months that an increasing number of market participants have been restricting material from Russia, in part or entirely, in their spot fuel oil and feedstocks trading activity.

Although some Russian product continues to flow to the European market, Platts understands that it is not trading on the same basis as product from other origins in the spot market, and that there is a difference in value between Russian and non-Russian product.

In addition, the European Unions fifth sanctions package came into effect on Aug. 10 encompassing products falling under CN code 2707, which traders say is often applied to 3.5%S FO due to its high aromatic content, which exceeds 50%. The exclusion of Russian origin product applies universally across all European HSFO and feedstocks assessments, irrespective of the customs code designated to the product.

As a result, with effect from Oct. 3, the Platts assessments listed below now exclude Russian-origin product. Bids, offers and trades reported in the Platts MOC assessment process for these assessments reflect non-Russian-origin product with effect from the same date.

Assessment CODE Mavg

FO 3.5%S CIF Med Cargo PUAAY00 PUAAY03

FO 3.5%S FOB Med Cargo PUAAZ00 PUAAZ03

FO 3.5%S CIF NWE Cargo PUABA00 PUABA03

FO 3.5%S FOB NWE Cargo PUABB00 PUABB03

FO 3.5%S FOB Rdam Barge PUABC00 PUABC03

Fuel Oil 3.5% 500 CST FOB Rdam Barge PUAGN00 PUAGN03

FOB ARA 0.1% DMA MGO Barge LGARD00 LGARD03

Straight Run 0.5-0.7%S FOB NWE cargo PKABA00 PKABA03

Straight Run 0.5-0.7% CIF Med Cargo AAJNT00 AAJNU00

VGO 0.5-0.6% Cargoes CIF NWE AAHMZ00 AAHNA00

VGO 0.5-0.6% FOB NWE AAHMX00 AAHMY00

VGO 2.0%S CIF NWE AAHND00 AAHNE00

VGO 2.0%S FOB NWE AAHNB00 AAHNC00

VGO 2.0%S FOB Rdam barge AAHNI00 AAHNJ00

LSVGO Black Sea ABBAD00 ABBAD03

HSVGO Black Sea ABBAC00 ABBAC03

VGO 0.8% CIF Med Cargo ABBAB00 ABBAB03

VGO 2% MAX CIF Med Cargo ABBAA00 ABBAA03

VGO 0.5-0.6% Barges AAHNF00 AAHNG00

VGO 2% MAX Barges AAHNI00 AAHNJ00

Although the FO 3.5%S CIF NWE cargo assessment typically reflects standard cracked Russian quality M-100, Platts may publish bids and offers in the Platts Market on Close assessment process for high sulfur fuel oil delivered into Northwest Europe with similar specifications which could be subject to normalization.

Clarification of the standards for assessments that exclude Russian-origin material is available at https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/062322-platts-clarifies-standards-for-assessments-that-exclude-russian-origin-material.

Platts will continue to monitor prevailing trade flows and review the plausible load ports in these assessments, including the continued inclusion of Russian load ports.

Please send additional feedback, questions or comments to europe_products@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 upon request.