Following a consultation period, S&P Global Platts proposes to amend the basket of loadports reflected in its 0.1% FOB Med Gasoil assessment (Code: AAVJI00), with effect from January 2, 2020, to reflect Sarroch, Novorossiisk and Batumi.
Specifically, under the proposal, the assessment would be derived by applying a freight netback calculated on the basis of the following voyages: Sarroch-Genoa, Sarroch-Lavera, Novorossiisk-Genoa, Novorossiisk-Lavera, Batumi-Genoa, Genoa-Lavera. The assessment would be derived by multiplying the annual Worldscale flat rates for those voyages by the daily applicable Worldscale assessment of Black Sea-Med and Cross-Med routes.
Currently, Platts derives its 0.1% FOB Med gasoil assessment by applying a freight netback calculated on the basis of the following voyages: Malta-Genoa, Malta-Lavera, Novorossiisk-Genoa, Novorossiisk-Lavera, Batumi-Genoa and Genoa-Lavera, and is derived by multiplying the relevant annual Worldscale flat rates by the daily Worldscale assessment of Black Sea-Med routes.
The proposal follows market feedback received during the consultation phase held between September 4 and October 1 around relevant and plausible loadports in the 0.1% Mediterranean gasoil market, showing a significant proportion of supply originating in the Black Sea and the increase of West Mediterranean volumes in the regional import market. The subscriber note announcing the consultation phase is available here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/090419-sa mpp-global-platts-opens-consultation-on-fob-amp-cif-med-01-gasoil-load-locatio ns
Following the change, S&P Global Platts will additionally amend the typical reference freight basket used to normalize indications received in the 0.1% CIF Med gasoil cargo Market on Close process back to the reference port of Genoa by taking into account the loadports of Sarroch, Novorossiisk and Batumi. Platts currently typically takes into account: Malta, Novorossiisk and Batumi.
Platts invites feedback on whether further amendments to the loadports should be reflected in these assessments.
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