Platts proposes to discontinue restricted-origin European ULSD assessments on March 1, 2023

Platts, part of S&P Global Commodity Insights, is proposing to discontinue its restricted-origin European ULSD cargo assessments, with effect from March 1, 2023.

These assessments were launched on April 11, 2022, to provide further price transparency into what was a developing market at the time, as Platts had observed a number of participants in the European diesel market restricting Russian material, in part or entirely, in their spot trading activity due to the Russia-Ukraine conflict.

As European markets increasingly shifted away from buying Russian-origin products, Platts decided to change the methodology of its established benchmark European diesel assessments to exclude Russian-origin product with effect from June 1, 2022, from open origin previously. The subscriber note announcing this change can be found here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/060122-platts-excludes-russian-origin-product-from-european-diesel-gasoil-cargo-assessments-june-1

As such, since June 1, both the restricted-origin European diesel assessments and the established benchmark European diesel assessments have reflected the same non-Russian origin material and have been assessed at parity.

Platts is now proposing to discontinue its restricted-origin European diesel assessments, with effect from March 1, 2023. The established benchmark European diesel assessments are not affected by the proposed discontinuation; they will continue to be published and will continue to reflect non-Russian material delivered into Europe.

The affected assessments are:

--ULSD 10 ppm Cargoes CIF NWE (restricted origin) (AAURO00)

--ULSD 10 ppm Cargoes CIF NWE (restricted origin) MAvg (AAURO03)

--ULSD 10 ppm Cargoes CIF NWE restricted origin spread (AAURP00)

--ULSD 10 ppm Cargoes CIF NWE restricted origin spread MAvg (AAURP03)

--Diesel 10ppm Cargoes CIF NWE (restricted origin) (AATRO00)**

--Diesel 10ppm Cargoes CIF NWE (restricted origin) MAvg (AATRO03)**

--Diesel 10ppm Cargoes CIF NWE restricted origin spread (AATRP00)**

--Diesel 10ppm Cargoes CIF NWE restricted origin spread MAvg (AATRP03)**

--Diesel 10ppm UK Cargoes CIF NWE (restricted origin) (AAVRO00)

--Diesel 10ppm UK Cargoes CIF NWE (restricted origin) MAvg (AAVRO03)

--Diesel 10ppm UK Cargoes CIF NWE restricted origin spread (AAVRP00)

--Diesel 10ppm UK Cargoes CIF NWE restricted origin spread MAvg (AAVRP03)

** basis CIF Le Havre

Separately, Platts has also opened a consultation on the evolving Russian-origin ULSD market. That subscriber note can be found here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/112422-methodology-platts-opens-consultation-on-russian-origin-ulsd-market

Please send any feedback, questions or comments by Dec. 9, 2022 to Europe_Products@spglobal.com and PriceGroup@spglobal.com.

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