Platts has introduced operational tolerance dynamic pricing eWindow functionality for CIF European ULSD/gasoil cargoes

Platts, part of S&P Global Energy, has introduced new operational tolerance dynamic pricing functionality on its eWindow communication tool for the Platts Market on Close assessment process for CIF Northwest European 10 ppm diesel and 0.1% gasoil cargoes, as well as CIF Mediterranean 10 ppm diesel and 0.1% gasoil cargoes, effective June 29.

With this addition, participants in the MOC process are able to select the operational tolerance pricing basis and change the corresponding pricing differential when submitting and controlling bids and offers for CIF European diesel/gasoil cargoes for publication directly through the eWindow communication tool, or do so through an editor who will then publish the bids and offers using the software.

In line with existing methodology, Platts reflects bids, offers and trades that limit a counterparty's price exposure to operational tolerance. Operational tolerance in CIF cargo markets is typically limited to plus or minus 10% of the transacted size for cargoes.

When pricing on a floating basis, Platts reflects CIF cargoes where the operational tolerance prices after the completion of discharge (COD).

Platts wishes to clarify to subscribers that main volume pricing and operational tolerance pricing are expected to be within a reasonable range, while accounting for market structure, in order to be reflected in the Platts CIF European distillate cargo MOC. Platts may review for publication instances where the two pricing elements are deemed to diverge significantly.

Platts has established clearly defined guidelines and standards of price incrementability which apply when publishing bids and offers in the MOC process in order to ensure an orderly and transparent price assessment process.

For further details of these guidelines, please see: https://www.spglobal.com/platts/en/our-methodology/methodology-specifications/oil/oil-timing-and-increment-guidelines

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 for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.