Platts launches independent FOB Fujairah 500 ppm sulfur gasoil outright assessment

Platts, part of S&P Global Commodity Insights, has launched an independent outright price assessment for 500 ppm sulfur gasoil in the Middle East market, effective Nov. 1, 2022.

The spot price assessment is described as "FOB Fujairah" in Platts publications and databases, and published alongside Platts' existing MOPAG 500 ppm sulfur gasoil physical netback value. The new assessment reflects spot cargoes loading on an FOB basis at ports across the Persian Gulf.

Platts first proposed this assessment in a subscriber note published Aug. 18, 2022: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/081822-platts-proposes-to-publish-independent-fob-fujairah-500-ppm-sulfur-gasoil-outright-assessment.

The Middle East has seen substantial growth in refining and storage capacity over the past decade, as well as widespread growth in physical oil trading and market participation. These factors have led to a more vibrant and active spot physical market for oil products, which will be the basis for these assessment.

Platts already publishes physical differential assessments for FOB AG 500 ppm gasoil, which is used to assess the new outright value, alongside any bids, offers or trades on an outright basis in the Platts Market on Close assessment process. The new daily outright assessment for 500 ppm sulfur gasoil reflects the value of cargoes with a minimum size of 200,000 barrels and maximum size of 300,000 barrels, loading 20-40 days forward. Platts will also publish a monthly average for the assessment.

OUTRIGHT VALUE: The independent outright assessment for 500 ppm sulfur gasoil reflects the existing spot differential (premium/discount) assessment of the product plus the associated MOPAG strip value. The strip reflects the average of daily swap values over a 21-day period between 20-40 days from the day of publication. The MOPAG Gasoil derivative assessments are based on bids, offers and trades seen in the Platts MOC process, as well as other observed spot market activity. Platts will also take into consideration physical bids, offers and trades on an FOB Arab Gulf basis in the MOC process. In the absence of any bids, offers or trades, Platts will take into consideration the Singapore derivatives for gasoil, coupled with relevant freight netback and forward freight agreement values.

The new FOB Fujairah 500 ppm sulfur gasoil outright assessment reflects the following specifications:

LOADING PORTS: Cargoes loading from the following Gulf ports will be considered for inclusion in the assessments: Jubail, Jebel Ali, Mina Al Ahmadi, Shuaiba, Ras Tanura, Ruwais, Mina Abdulla, Sohar, Sitra, Fujairah, Ras Laffan and any safe and sound port within this geographic area. Platts will only publish offers where sellers specify at least one and no more than three representative load points and would only publish bids where buyers specify at least three representative load points.

For all trades reported through the Platts MOC process for the above assessments, the seller would declare the terminal 12 days prior to loading. The buyer would nominate the vessel seven days prior to loading and narrow the loading window to three days, subject to terminal acceptance.

TIMESTAMP: The price assessment reflects the tradable value at 12:30 pm Dubai time. This timestamp aligns with the respective netback values that Platts already publishes in the Middle East, corresponding to the 4:30 pm Market on Close in Singapore.

The new assessment will appear in Platts Asia-Pacific/Arab Gulf Marketscan; on pages 2018 and 2019 on Platts Global Alert and Platts Refined Products Alert; and in the Platts price database under the following codes:

Assessment name Code

Gasoil 500ppm FOB Fujairah Cargo AFUJN00

Gasoil 500ppm FOB Fujairah Cargo MAvg AFUJN03

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