SUBSCRIBER NOTE: Platts to amend the 0.1%S FOB and CIF Med gasoil load locations

Following market feedback, S&P Global Platts will amend the basket of loadports reflected in its 0.1%S FOB and CIF Med Gasoil assessments (Code: AAVJI00, AAVJJ00), with effect from January 2, 2020, to reflect Sarroch, Novorossiisk and Batumi.

The change follows market feedback received during a formal consultation around relevant and plausible loadports in the 0.1% Mediterranean gasoil market, showing a significant proportion of supply originating in the Black Sea and the increase of West Mediterranean volumes in the regional import market.

The subscriber note announcing the consultation phase is available here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/090419-sampp-global-platts-opens-consultation-on-fob-amp-cif-med-01-gasoil-load-locations. The change was subequently proposed in a subscriber note published October 14, 2019 available here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/101419-platts-proposes-amending-01-cif-med-gasoil-load-locations

Specifically, under the change, the assessment will be derived by applying a freight netback calculated on the basis of the following voyages: Sarroch-Genoa, Sarroch-Lavera, Novorossiisk-Genoa, Novorossiisk-Lavera, Batumi-Genoa, Genoa-Lavera. The assessment will be derived by multiplying the annual Worldscale flat rates for those voyages by the daily applicable Worldscale assessment of Black Sea-Med and Cross-Med routes.

Currently, Platts derives its 0.1%S FOB Med gasoil assessment by applying a freight netback calculated on the basis of the following voyages: Malta-Genoa, Malta-Lavera, Novorossiisk-Genoa, Novorossiisk-Lavera, Batumi-Genoa, Genoa-Lavera and is derived by multiplying the relevant annual Worldscale flat rates by the daily Worldscale assessment of Black Sea-Med routes.

Following the change, Platts will additionally amend the typical reference freight basket used to normalize indications received in the 0.1%S CIF Med gasoil cargo Market on Close assessment process back to the reference port of Genoa by taking into account the loadports of Sarroch, Novorossiisk and Batumi. Platts currently typically takes into account: Malta, Novorossiisk and Batumi.

The FOB and CIF cargo assessments for 0.1%S Med gasoil are published in the Platts European Marketscan and PGA page 1114 and are identified in the Platts price database under the codes AAVJI00 and AAVJJ00, respectively.

Platts invites feedback on whether further amendments to the load ports should be reflected in these assessments. Please send any comments or queries to europe_products with a cc to pricegroup.

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.