Platts seeks immediate feedback on Middle East clean refined products FOB AG spot differential methodology

Platts, part of S&P Global Energy, seeks immediate feedback on its FOB AG spot differential assessment methodology for clean refined products, including LPG, naphtha, gasoline, gasoil and jet fuel, in the event of further disruption to shipping and oil operations outside the Strait of Hormuz.

In a March 2 subscriber note, Platts suspended the publication of bids and offers of refined products on an FOB basis where these included load ports requiring transit through the Strait of Hormuz.

Due to the rapidly evolving situation in the Middle East, Platts is seeking feedback on the deliverability of clean refined products loading in Middle East ports outside the Strait of Hormuz. Platts is also seeking feedback on its FOB AG spot differential assessment methodology in the event of sustained disruption to loading operations outside the strait.

Specifically, Platts is seeking feedback on the following methodology approaches:

Methodology Approach 1

FOB AG spot differentials to be assessed based on observed daily spot differentials in related markets, including Singapore, adjusted for relevant FOB AG assessment dates. The underlying MOPAG netback methodology would remain unchanged.

Methodology Approach 2

FOB AG spot differentials to be assessed based on previously assessed historical differentials in the FOB AG market. Platts seeks feedback on:

• Market views regarding fixed or floating price basis
• The time frame for deriving historical price relationships

Separately, Platts continues to seek feedback regarding timelines and required conditions for resuming publication of bids and offers for refined product cargoes loading from ports requiring transit through the Strait of Hormuz, in the Platts Market on Close assessment process.

Please send any feedback or questions to asia_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.