SUBSCRIBER NOTE: Platts opens review of Middle East products methodology

Platts is reviewing the volumes and nomination procedures reflected in its Middle East gasoline, naphtha, gasoil, jet fuel and fuel oil spot cargo differential assessments, and invites submissions from the marketplace to the review process. Platts has no plans to change or amend the methodology for its outright FOB Arab Gulf oil products netback assessments. Instead, Platts is reviewing the methodology for the following spot differential assessments:

Assessment Code Naphtha AAPKH00 Gasoline 95 AAWUJ00 Gasoline 95 CFR AAWUK00 Jet Kero PJACV00 Gasoil 50 ppm AASGK00 Gasoil 500 ppm AAFFD00 Gasoil 0.25% AACUC00 Gasoil POAID00 FO 180 AAXJA00 FO 380 AAXJB00 Specifically, Platts is studying whether or not it remains suitable to broadly reflect nomination processes and volumes in the FOB Arab Gulf spot market assessment process which mirror those currently used in the Singapore spot market. In the current nomination process, seven days prior to loading, seller must declare terminal and buyer nominates vessel with loading window narrowed to three days, subject to terminal's acceptance. Platts is considering amending this to seller declaring terminal 10 days' prior to loading, and buyer nominating vessel five days' prior to loading with loading window narrowed to three days, subject to terminal's acceptance. Platts is also studying the loading period that these assessments reflect and whether they should reflect loading from a specific base port such as Fujairah, with market indications for alternative locations normalized to this location. The assessments currently reflect cargoes loading or delivering 15 to 30 days from the assessment date, except in the case of gasoline, for which cargoes are loading or delivering 15 to 45 days out. Platts is considering amending this period for all products to 20 to 35 days from the assessment date, or an alternative range. Platts periodically reviews the specifications of all its assessments to ensure they are representative of the most tradeable grades or sizes. Such reviews may lead to changes to the existing specifications of an assessment, though any changes would be subject to further industry consultation ahead of any final decision. Please send submissions for the review process should be sent to asia_products@platts.com and pricegroup@platts.com by January 2, 2014. 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.