Platts confirms North Sea-Rotterdam FAF weighted average flat rate from Jan 2, 2024

Platts, part of S&P Global Commodity Insights, confirms that the weighted average flat rate used for the North Sea-Rotterdam WTI Midland Freight Adjustment Factor from Jan. 2, 2024 will be $6.60/mt.

This follows a subscriber note published Nov. 30 confirming the weightings for 2024:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/113023-platts-to-maintain-weightings-in-north-sea-rotterdam-freight-adjustment-factor-for-2024

Platts calculates the WTI Midland Freight Adjustment Factor (FAF), reflected in Dated Brent, as a weighted average based on relative production of Brent, Forties, Oseberg, Ekofisk and Troll.

The weightings for 2024 will be unchanged, as follows:

Sullom Voe: 6%

Hound Point: 34%

Sture: 10%

Teesside: 31%

Mongstad: 19%

Based on these weightings and the current 2024 World Scale flat rates, the average flat rate used in the WTI Midland FAF calculation will be $6.60/mt. Please note that average flat rate is subject to revision should any of the five terminal to Rotterdam flat rates be updated.

The 10-day rolling average of the Platts Dirty Cross-UK/Continent 80,000 mt Worldscale freight assessment [TDUUW00] and the Rotterdam port fee will be applied to the average flat rate and multiplied by 80%.

Platts publishes the North Sea-Rotterdam Freight Adjustment Factor, used for the adjustment of WTI Midland from CIF Rotterdam to FOB North Sea-equivalent value, to the code FSFRM00

The FAF is published at 11 am London time ahead of the Platts Market on Close assessment process to pages PGA and PCR 1218. It is also published in Crude Oil Marketwire.

Please send all feedback and questions to europe_crude@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 feedback not marked as confidential available to the public upon request.