S&P Global Platts proposes to publish waterborne assessments for gasoil and kerosene FOB Tokyo Bay, LC1 laycans, as a calculated netback from Platts Tokyo Bay rack assessments between October 1, 2020 and March 31, 2021.
Under the proposal, these assessments will be based on the netback costs to transport oil products from a refinery or secondary tanks for waterborne, into tanks used for the rack market. Platts will review these netback costs periodically and will update when necessary.
The proposed amendment and time-limited continuation follows on the proposal Platts made to discontinue assessments for all Japan domestic waterborne oil product assessments for gasoline, gasoil, kerosene, A fuel oil and low sulfur A fuel oil, effective October 1, 2020 (http://plts.co/MN9c30qFzos).
Following market feedback that TOCOM still requires these assessments in financial derivatives products, Platts will now continue to publish waterborne assessments for gasoil and kerosene FOB Tokyo Bay, LC1 laycans beyond October 1, 2020. These will be discontinued on April 1, 2021. Details on the discontinuation of all the other waterborne oil product assessments can be found here http://plts.co/doMM30qFPSS
Under the proposed netback methodology, the LC1 waterborne assessments for gasoil and kerosene FOB Tokyo Bay would reflect the prevailing market value at 2 pm Japan Standard Time (0500 GMT) effective October 1 -- the same timestamp as the Japanese rack oil products markets – bringing it forward from the current 3:30 pm.
The waterborne MOC process that currently ends at 3:30 pm would be discontinued from October 1, including the instruments that were available on the eWindow tool.
The Japanese oil products waterborne assessments are published on the Japan Dashboard, on Platts Global Alert on pages 2016 and 2017, and in the Platts price database under the codes listed below.
Waterborne Daily Assessments Price symbol codes
Gasoil 10 ppm FOB Tokyo Bay LC1 Waterborne PJPAB00
Kerosene FOB Tokyo Bay LC1 Waterborne PJPAC00
Waterborne Monthly Averages Price symbol codes
Gasoil 10ppm LC1 FOB Tokyo Bay PJPAB03
Kerosene LC1 FOB Tokyo Bay PJPAC03
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