SUBSCRIBER NOTE: Platts 2015 European freight-based oil assessments (update)

Platts has reviewed feedback to its subscriber note of October 21, 2014, where Platts clarified that its European freight-based oil assessments in 2015 would not reflect Worldscale fixed differentials based on the use of 0.1% sulfur fuels in the Baltic and North Sea ECA.

Following its review of that feedback Platts wishes to further clarify that this extends to all published freight-based oil assessments in Europe, including: ULSD 10 ppm FOB NWE Cargo, ULSD 10 ppm FOB NWE Le Havre Cargo, ULSD 10 ppm CIF NWE Le Havre Cargo, Diesel 10 ppm UK CIF, Diesel 10 ppm CIF NWE, Gasoil 0.1% FOB NWE Cargo, HSFO 3.5% FOB NWE Cargo, CIF MED naphtha, FOB MED naphtha and Jet FOB MED.

Platts understands that Worldscale has announced fixed differentials based on the use of 0.1% sulfur fuels in the Baltic and North Sea ECA zones of $48.35 per mile of the voyage steamed within the zones for 2015.

Platts clarifies that for its freight-derived cargo assessments, Platts will continue to calculate these freight derived assessments by using the $/mt Worldscale flat rates only, and will not apply these fixed differentials in 2015.

This continues existing methodology, where Platts only uses the $/mt Worldscale flat rates for these netback calculations and does not use Worldscale fixed rate differentials for 1% sulfur fuel in the ECA zones.

Platts also clarifies that for its LSFO 1% CIF NWE and CIF Med assessments that are typically derived as freight netbacks from the LSFO FOB NWE assessment, the fixed rate differentials will also not be applied.

Platts Urals ex-Baltic Sea (FOB) and Urals ex-Primorsk (FOB) will also only take in to account the $/mt Worldscale rates in 2015, as it has previously done.

Please send any further comments or questions by December 19, 2014 to europe_products@platts.com and pricegroup@platts.com.

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.