S&P Global Platts is proposing to amend the composition of its Latin American and Caribbean jet fuel index to reflect only Mexican and Brazilian assessments, and rename it to the Latin American jet fuel index, effective July 1, 2021.
This follows a decision by Platts to discontinue its Caribbean jet fuel assessment on July 1: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/032421-platts-to-discontinue-peru-caribbean-export-refined-product-assessments-july-1-2021
The Latin America and Caribbean jet fuel index currently comprises the value of jet fuel at Mexico (70%), Brazil (20%) and the Caribbean (10%). With the discontinuation of the Caribbean jet fuel price, Platts is proposing that Mexico and Brazil will account for 60% and 40% of the regional index, respectively, from July 1 -- reflecting jet fuel demand primarily from uplift data and trading volume.
The value of jet fuel at Mexico and Brazil will continue to be underpinned by the Platts Jet CIF Eastern Mexico assessment (AATFG00) and the Platts Jet CFR Santos assessment (AJAAD00), respectively.
Following the change, the regional index will also be renamed the Latin American jet fuel index. The latter is one of five indices that comprise the Platts Global Jet Fuel Index, accounting for 4.08% of the total. The Platts Global Jet Fuel Index is a weighted average of Platts jet fuel assessments from major global trading, supply and demand centers. The weightings in the index represent a broad view of proportional demand for jet fuel around the world. The proposed change would not impact the weighting of the regional index in the calculation of the Global Jet Fuel Index.
The affected assessments are:
These assessments appear on Platts Global Alert page 115, in US Marketscan and in the Platts price database under the codes above.
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