Freight differentials in European ULSD, gasoil cargo assessments

Platts, part of S&P Global Commodity Insights, wishes to remind subscribers that in its Market on Close assessment process, it may publish bids, offers and trades from locations other than the basis port and may normalize them back to the basis port for assessment purposes.

In determining plausible origins or destinations, Platts will take into account prevailing spot market flows, including any structural change in flows at the time the bids, offers or trades are reported.

With regards to European assessments of ULSD and Gasoil cargoes, Platts has reviewed structural flows and has advised it will change the freight baskets and freight rates used in the calculation of its European ULSD and gasoil FOB netback and CIF net-forward cargo assessments to exclude Russian loadports and take into account changing trade flows into Europe with effect from Jan. 3, 2023. The subscriber note confirming the change is available at: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/103122-platts-to-change-european-ulsd-gasoil-netback-and-net-forward-freight-baskets-jan-3-2023

Consistent with a review of structural flows, Platts may reference similar assumptions around loadports when normalizing bids, offers and trades for locations other than the basis port reported in its Market on Close assessment process. Platts wishes to remind subscribers that this is subject to daily review and exercise of editorial judgment, as per existing methodology.

Please send any feedback, questions or comments to Europe_products@spglobal.com and PriceGroup@spglobal.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.