S&P Global Platts is proposing two changes to its Alaska North Slope assessment, both of which would go into effect on Nov. 1, 2021.
Platts proposes to change its roll date for the ANS assessment from the first business day on or after the 10th of each month to the first business day of the month.
For example, Platts would begin ANS assessments for deliveries in January 2022 on November 1, 2021. The change is in response to typical trade activity data and timing observed in the market. Spot physical trading for ANS cargoes typically occurs two months in advance and trading is most active between the first of the month through about the 15th of the month.
Platts also proposes to begin publishing its ANS assessment as a differential to the ICE Brent Calendar Month Average for the delivery month being assessed in addition to NYMEX WTI CMA differential.
The ICE Brent CMA uses the same calculation as the Platts assessment for the Brent Frontline Swap for the delivery month being assessed. The Brent Frontline Swap that corresponds with the ANS delivery month is under the symbol (BHFSM02).
The ICE Brent CMA/Brent Frontline Swap is the weighted average of the assessment value at Houston Market on Close for the futures contract that will be the front-month during the ANS assessment delivery month (used for all trading days except expiration day) and the value at Houston Market on Close for the futures contract that will be the month-two contract during the ANS assessment delivery month (used for expiration day only).
For example, on November 1, when Platts begins its assessment for January 2022 delivery ANS, the ANS assessment would be published as a differential to the January ICE Brent CMA. The January ICE Brent CMA would be calculated as a weighted average of the March futures Houston MOC value (19 days) and April futures MOC value (1 day).
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