Platts to maintain ME crude cargo size standards

Following extensive market consultation, Platts has decided to maintain the cargo size reflected in its Dubai, Oman and Upper Zakum crude oil spot price assessment process at the current level of 475,000 barrels.

Partial cargoes, trading in lots of 25,000 barrels each, will continue to converge into a full physical cargo when a 19th partial is traded between a single buyer and a single seller, resulting in a 475,000-barrel cargo.

This standard is equivalent to a full 500,000-barrel cargo with an implied operational tolerance of minus 5%. On July 9, and in subsequent public methodology forums, Platts requested feedback on the concept of adapting this mechanism for convergence upon 20 partials, into a 500,000-barrel cargo.

Owing to continued changes in the allocations of crude available for export under OPEC quotas, the current convergence into a 475,000-barrel cargo is likely to remain the most efficient deliverable size for spot Middle Eastern crude cargoes for the immediate future.

Operational tolerance will continue to be defined under Platts methodology as 1,000 barrels.

Please send any further comments and queries to asia_crude@platts.com and pricegroup@platts.com.