SUBSCRIBER NOTE: Platts launches daily MPP assessments for Mexico Maya crude

S&P Global Platts has launched daily assessments of Mexican heavy sour crude Maya from October 28, 2019.

Platts calculates a daily value for Maya using a Market Parity Price (MPP) model, instead of assessing the grade through its existing Market On Close assessment methodology.

The MPP calculation for Maya is based on the grade's Gross Product Worth benchmarked to a reference basket of relevant crude grades that are actively traded in the regional spot market. These grades are Canada's Western Canadian Select, Colombia's Vasconia and Castilla, and Ecuador's Oriente and Napo. The five basket grades, Maya and their gross product worth are normalized for delivery to the US Gulf Coast, accounting for freight and regional spot product prices.

The MPP model, which Platts also uses to assess certain illiquid crude grades from West Africa, will ensure the assessment captures both the inherent refining value of the crude as well as the broader oil market supply-demand fundamentals reflected in the price of the reference basket.

To learn more about Platts Market Parity Price assessments, click on https://www.spglobal.com/platts/plattscontent/_assets/_files/en/our-methodolo gy/methodology-specifications/market-parity-price-faq.pdf.

Platts will review the MPP model for Maya annually to ensure it continues to reflect prevailing market conditions and quality of the crude grades.

Please send all feedback, comments 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 upon request.