Platts launches Aframax USGC-UKC freight derivative assessments

S&P Global Platts has launched Aframax 70,000 mt US Gulf Coast-UK Continent freight derivative assessments, effective Nov. 1, 2021, to provide further transparency to the US Gulf Coast crude oil export and freight markets.

Platts has started publishing freight derivative assessments on this route for the balance month, current month and three forward months.

Platts first proposed the launch of these assessments in a subscriber note published Sept. 1: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/090121-platts-proposes-to-launch-aframax-usgc-ukc-freight-derivative-assessments

There has been increasing interest in freight forward contracts on this route, following growing crude exports from the US to Europe.

US crude exports from the Gulf Coast to Europe increased to an average of 970,000 b/d in the first six months of 2021, compared with 110,000 b/d throughout the whole of 2016, according to US Census data.

Of the total US crude export volume in H1 2021, shipments to Europe comprised about a third, up from a 19% share in the whole of 2016, according to the data.

The balance-month and current-month derivatives are assessed from the first, up to and including the 15th of each month.

The balance-month contract financially settles against the Platts Aframax 70,000 mt USGC-UKC spot freight assessments (Platts price database code TDUCF00) on every remaining publishing day of the month, including the day of publication.

The current month contract financially settles against the same Platts spot freight assessment on every publishing day of the current month.

The three forward-month contracts also financially settle against the Platts Aframax 70,000 mt USGC-UKC spot freight assessments on every publishing day in the month, and these roll on the first publication day of each month.

All assessments reflect a minimum volume of 1,000 mt. The assessments are published in Worldscale points as well as US dollars per mt.

The assessments reflect the transactable value of the contracts at 1:30 pm Houston time, and follow the Houston publication schedule.

The new assessments are:

These assessments are published in the Dirty Tankerwire, on Platts Global Alert page PGT1990 and Platts Shipping Alert page SHP2432, and in the Platts price database under the codes above.

Please send all feedback, comments or questions to shipping@spglobal.com and pricegroup@spglobal.com.

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