Platts amends Platts European Sour Crude Index from July 1

Platts, part of S&P Global Energy, has amended the basket of crudes comprising the Platts European Sour Crude Index (ESCI) to reflect a delivered Europe value inclusive of arbitrage crude grades, from July 1.

ESCI previously reflected a FOB North Sea value with a basket comprising three North Sea-loading grades.

In response to evolving trade flows in the European medium and sour crude markets, Platts has amended the index basket to reflect the following assessments:

In line with a proposal published on March 25 and a decision published on May 18, from July 1 the Platts European sour crude index is calculated as an evenly weighted average of the five assessments, and continues to be published both as an outright price and as a differential to forward Dated Brent under the following symbols:

• Platts European Sour Crude Index [CSBEA00]
• Platts European Sour Crude Index vs Forward Dtd Strip [CSBEB00]

Previously, the differential assessment was named "European Sour Crude Index vs North Sea Dtd Strip" and published under the same code [CSBEB00].

The revised basket reflects feedback from market participants that the European medium and sour crude markets have evolved to comprise higher volumes of longer-haul crudes from Latin American and Middle Eastern producers in addition to native sour crudes. Previously, the Platts European sour crude index was published as a volume-weighted average of the following assessments:

• Johan Sverdrup FOB Mongstad: 65%
• Grane FOB Sture: 30%
• Flotta Gold FOB Flotta: 5%

Liza, Kirkuk net-forward values

As part of these amendments, Platts has launched two net forward calculations for Guyanese Liza and Iraqi Kirkuk on a CFR Rotterdam and CFR Augusta basis, respectively, reflecting their typical destinations within Europe. Both net-forwards are published as an outright price and as a differential to forward Dated Brent, under the above symbols.

These net-forward calculations utilize Platts existing Liza FOB Guyana [ALIZB00] and Kirkuk FOB Ceyhan [AAGYF00] spot assessments in addition to the latest available Guyana -UKC Suezmax [DGUMV00] and Ceyhan-Med Aframax [PFAJP10] assessments to derive a CFR Rotterdam and CFR Augusta value, respectively.

The publication of these assessments and the ESCI follow the London publication calendar. Liza CFR Rotterdam is calculated using the latest available published assessments for Liza FOB Guyana [ALIZB00] and Guyana-UKC Suezmax [DGUMV00], which follow the US publication schedule.

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