Platts will not proceed with proposed Middle East refined products MOC nomination changes; considers two-port bid requirement

Platts, part of S&P Global Energy, will not proceed with its proposed Sept. 1 changes to load-port nomination standards in the Middle East refined products Platts Market on Close assessment process, as announced in a June 30 subscriber note.

Following extensive market feedback, Platts will not implement the proposed changes at this time and will continue reviewing the proposed nomination standard in its FOB Middle East refined products MOC.

Market participants said the proposed changes would be better considered as a potential future enhancement if freight market volatility and regional logistics costs return closer to historical norms, in light of the regional volatility around hostilities in the Middle East.

Separately, Platts is proposing that buyers submitting FOB Arab Gulf bids in the Middle East refined products MOC specify at least two load ports from Sept. 1.

Sellers would continue to specify at least one and no more than three load ports when submitting offers.

The proposed change would apply to the suite of FOB Arab Gulf spot assessments for naphtha, gasoline, gasoil, jet fuel and fuel oil.

Cargoes loading from reasonable and safe ports in the Gulf of Oman will remain eligible to be considered for inclusion in the MOC and would be normalized to an FOB Fujairah basis, where appropriate.

More information on Platts Middle East refined products methodology is available here.

Please send all comments, questions or feedback to asia_products@spglobal.com and pricegroup@spglobal.com by Aug. 14.

For written comments, please provide a clear indication if they are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make those not marked as confidential available upon request.