Platts launches Tupi crude FOB Brazil assessment Oct. 11

Adding to its suite of FOB assessments for significant Latin America crude oil grades, S&P Global Platts has launched a daily assessment of Tupi crude FOB Brazil, effective Oct. 11, 2021.

The new Tupi FOB Brazil assessment reflects 2 million-barrel VLCC cargoes loading 30-60 days forward via ship-to-ship transfer at Porto do Acu. Platts may publish market information for cargoes loading at other locations in Brazil and Uruguay, but this may be normalized to reflect loading economics at Porto do Acu.

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. 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.

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.

The assessments are published under the following Platts symbols:

ATUPA00 Tupi FOB Brazil

ATUPB00 Tupi FOB Brazil vs Latin America Brent Futures Strip

ATUPC00 Tupi FOB Brazil vs Latin America WTI Strip

ATUPD00 Tupi FOB Brazil vs Latin American Dated Brent Strip

ATUPA03 Tupi FOB Brazil MAvg

ATUPB03 Tupi FOB Brazil vs Latin America Brent Futures Strip MAvg

ATUPC03 Tupi FOB Brazil vs Latin America WTI Strip MAvg

ATUPD03 Tupi FOB Brazil vs Latin American Dated Brent Strip MAvg

The new assessments are available on Platts Global Alert pages 280 and 281. They are also published in Crude Oil Marketwire, Latin American Wire and Oilgram Price Report.

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.