Platts proposes to discontinue its ULSD 10 ppm CIF NWE all-origin assessment and related spread from Jan 2, 2025

Platts, part of S&P Global Commodity Insights, is proposing to discontinue its ULSD 10 parts per million CIF Northwest Europe all-origin assessment [ALORA00] and related spread to benchmark ULSD 10 ppm CIF NWE assessment [ALORB00], effective Jan. 2, 2025.

This proposal follows on from a consultation detailed here.

Platts opened the consultation in November 2022 to seek industry feedback on how best to provide continued transparency into the Russian-origin diesel market following EU sanctions on Russian oil products which came into force in February 2023. Following this, the ULSD CIF NWE all-origin assessment no longer reflects Russian-origin product, as its current methodology is on a CIF Northwest Europe basis.

In particular, Platts invited feedback on the future of the ULSD CIF NWE all-origin assessment and related all-origin spread [ALORB00], and whether these assessments should be discontinued or amended to reflect the continued flow of Russian oil products to markets outside the EU.

Industry feedback and observation of vessel flows have since indicated that following the February 2023 EU sanctions on Russian oil products there has been a reshaping of traditional flows of Russian material to destinations outside the EU, including the emergence of new trading hubs for the product, such as Brazil, Turkey and Africa.

As part of its commitment to bringing transparency to these new markets, Platts began assessing ULSD cargoes delivered into South Brazil from all origins, including Russia, from Sept. 1, 2023. More details of the Platts ULSD DAP South Brazil all-origin assessment can be found here.

Feedback has also indicated that existing sanctions on imports of Russian-origin into the EU are not expected to be lifted for the foreseeable future, and Platts is therefore proposing to discontinue its ULSD10 ppm CIF NWE all-origin assessment [ALORA00] and related spread to benchmark ULSD 10 ppm CIF NWE assessment [ALORB00], effective Jan. 2, 2025.

The proposed changes will not impact other Platts European diesel assessments including benchmark price assessment Platts ULSD 10ppmS CIF NWE Cargo [AAVBG00], which continue to exclude Russian-origin product.

Platts launched its ULSD 10 ppm CIF NWE all-origin assessment [ALORA00] and related spread to benchmark ULSD 10 ppm CIF NWE assessment [ALORB00] in June 2022 to reflect material from all origins, including Russia, with the aim of providing transparency into the continued flow of Russian diesel to some Northwest European importers at the time. Platts concurrently changed its benchmark assessment methodology for diesel cargoes delivered in Northwest Europe and the Mediterranean to exclude Russian-origin product with effect from June 1, 2022, as European markets increasingly shifted away from buying Russian-origin oil products after the Russian invasion of Ukraine. More details can be found here.

Platts will continue to monitor flows of Russian-origin diesel, as well as the emergence of new trading hubs for the product.

Please send any feedback, questions or comments to europe_products@spglobal.com and pricegroup@spglobal.com by Dec. 6. 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.