Platts proposes to launch CPC Blend Suezmax assessment, amend netback calculations from April 15

In response to evolving supply trends in the Mediterranean crude market, Platts, part of S&P Global Commodity Insights, proposes to launch a standalone Suezmax assessment for CPC Blend on a CIF Augusta basis, both as an outright price and a differential to Dated Brent from April 15.

The standalone assessment will be published alongside Platts existing CPC Blend CIF Augusta Aframax assessment [AAHPL00].

Growing production from Kazakhstan's Tengiz oilfield, expected to add an additional 260,000 b/d of CPC Blend production capacity, has increased the prevalence of Suezmax-size cargoes in the grade's loading program, according to market participants and copies of loading schedules seen by Platts.

The proposed assessment would reflect cargoes of 130,000 mt pricing 5 days after B/L as standard loading in the period 20-40 days ahead of the assessment date.

Platts will consider bids and offers for cargoes between 90,000-140,000 mt for assessment purposes, subject to normalization back to the 130,000 mt basis size.

Platts proposes to amend its FOB Novorossiysk CPC Blend Suezmax netback calculation to align with the new CPC Blend CIF Augusta Suezmax assessment, reflecting a 130,000 mt basis size and deriving an FOB value through the netting back of freight costs, Black Sea additional war risk premia, and Turkish strait demurrage in line with existing methodology.

As part of this proposal, Platts also proposes to publish a spread between its CPC Blend Aframax and Suezmax assessments on a CIF Augusta basis.

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

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available to the public upon request.