Platts proposes changes to load port nomination standard in Middle East Refined Products MOC

Platts, part of S&P Global Energy, is proposing changes to the load port nomination standard in its Middle East refined products Platts Market on Close assessment process to reflect the wider supply and demand fundamentals of all the ports reflected in the assessment, effective Sept. 1.

Under this proposal, Platts would reflect bids where the buyer specifies one load port and is willing to load in a different location to the specified port in their bid, subject to potential freight compensation. Freight compensation should be commensurate with the demonstrable incremental freight cost to the disport from the specified load port and actual load port, based on prevailing market freight rates, and should not be based on commercial considerations.

The buyer would also pass on any freight savings to the seller, should the freight cost from the specified load port in the bid to the disport be more than the actual freight cost from the load port to the disport. Trades basis other locations would be normalized to basis Fujairah by analyzing freight costs. The above changes would apply to naphtha, gasoline, gasoil, jet fuel and fuel oil.

The current standard timelines on load port and ship nominations would continue to apply, i.e., for all trades reported through the MOC, the seller would declare the terminal 12 days prior to loading; the buyer would nominate the ship seven days prior to loading, subject to terminal acceptance.

Platts currently requires that buyers specify at least one load point in bids, while sellers must continue to specify in offers a minimum of one and a maximum of three representative load points.

Further details can be found in the specifications guide.

Platts would like to remind market participants that, as of March 2, Platts suspended publishing bids and offers in the Middle East refined products MOC, where they reflect loading at ports within the Persian Gulf that require transit through the Strait of Hormuz, until further notice.

Given the evolving market dynamics in the region and the prospect of de-escalation of hostilities, Platts is closely monitoring market dynamics in the region and continuing to gather feedback around the suitability and timelines for lifting the aforementioned suspension in the Platts Middle East refined products MOC. In the event of a change to the market situation in the region, Platts may issue further methodological guidance via subscriber notes.

Please send any feedback or questions to asia_products@spglobal.com and pricegroup@spglobal.com by July 24.

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