Platts launches CFR Rotterdam Buzios crude assessment Nov 1

As part of its commitment to provide insight into new and emerging trade flows, Platts, part of S&P Global Commodity Insights, has launched an assessment for Brazilian Buzios crude on a CFR Rotterdam basis Nov. 1, 2024.

The CFR Rotterdam Buzios assessment reflects standard cargoes of 1 million barrels for delivery into Rotterdam 30-60 days ahead. Bids and offers for cargoes between 950,000-1.05 million barrels may be published for consideration in the assessment.

The new assessment reflects a 1630 London time stamp and follows the London publishing schedule. Since the EU's import ban on seaborne Russian crude oil imports from Dec. 5, 2022, Buzios has increasingly been pulled into Europe as a heavier substitute barrel, according to feedback from market participants and vessel tracking data seen by Platts.

The launch follows requests from market participants for a delivered-Europe Buzios assessment to reflect the growing flow of Brazilian crude to the region and to bring greater transparency to the value of heavier crudes delivered to Europe in replacement of Russian flows.

FOB Brazil Buzios Netback

In addition, Platts has launched an FOB Brazil Buzios netback, calculated using the CFR Rotterdam Buzios assessment and subtracting the latest available Platts Brazil-UKC 130,000 mt Suezmax freight assessment (ABRKB00).

The FOB Buzios netback is published only on days the CFR Rotterdam assessment is published. The FOB netback provides a reference for the theoretical value of Buzios crude at the point of loading, in the absence of an active spot market currently. In the event the market evolves to trade more frequently on an FOB basis, Platts may consider assessing FOB Brazil Buzios crude independent of the CFR Rotterdam assessment at a later date.

Such modifications would be made in line with Platts Methodology Change Standards, including announcement of changes via subscriber notes. Both the CFR Rotterdam assessment and the FOB Brazil netback are published as outright prices and as differentials to a calendar month average of forward Dated Brent.

Platts will roll the pricing month for the Buzios crude assessments on the 15th of each month. For example, on Nov. 15, 2024, Platts will roll the pricing basis for both the FOB and CFR Rotterdam Buzios assessments from December Dated Brent to January Dated Brent. Should the 15th not fall on a publishing day, the pricing basis will roll on the next available working day.

The new assessments complement Platts' existing suite of assessments for Latin American and comparable West African crudes.

Buzios has an API of 32 degrees and a sulfur content of 0.31%, according to assays seen by Platts. Please send all feedback, comments or questions to europe_crude@spglobal.com and pricegroup@spglobal.com.

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