These are a series of deep-dive discussion papers examining current price-discovery issues in the market place. These are typically issues Platts is tracking in detail and may be consulting with the market on in advance of making changes to existing methodologies or launching new assessments. These are of interest to all those affected by price-discovery methodology and process in the energy, petrochemical and metals markets.
Dated Brent: The Pricing Benchmark for Asia-Pacific Sweet Crude Oil
Published May 2011
The Dated Brent benchmark has taken on an increasingly significant role in the determination of oil prices in the entire Asia-Pacific region. This paper examines and explains the reasons for this ongoing and accelerating trend.
Major Findings in US Markets Following the 3.15pm ET Alignment
Published April 2011
On June 1, 2009, Platts made a major change to its Americas oil assessment processes, aligning all price inputs to 3:15 pm Eastern Time. This report details the impact of the alignment, proving that the revised methodology has resulted in several key benefits.
Developments and Price Trends in Bakken Blend Crude
This backgrounder document discusses the latest developments and price trends surrounding Bakken Blend Crude. Platts explains that the outlook for Bakken crude production for the next few years is promising, and many of the government reserve estimates could be understating the potential of the Bakken and Three Forks formations.
The Increased Divergence of WTI Pricing From World Markets
Published March 2011
The usefulness of West Texas Intermediate (WTI) as a broad indicator of US crude oil value is in question, and producers and refiners are looking for alternatives. Although Platts launched the Americas Crude Marker in March 2009, industry preference seems to point to the practice of valuing crudes using more established benchmarks with a long history and global acceptance, such as Brent.
The Change to 3.15pm ET in Platts Americas Oil Assessments: A Year in Review (PDF)
Published July 2010
This year-in-review document analyzes the change to 3:15 p.m. ET in Platts Americas Oil Assessments. The data gathered shows a clear pattern of growing physical trade since June 2009, with record levels of liquidity seen in our MOC processes in April and May 2010.
The Change to 3.15pm ET in Platts Americas Oil Assessments: A Year in Review (Excel)
The Structure of Global Oil Markets
Published June 2010
Platts editors explain the structure of global oil markets, in addition to the different types of oil and their classifications. Learn how physical oil and oil derivatives are bought and sold, with discussions of floating price deals, hedging, and selling long and short.
Pricing the Bakken Formation
Published May 2010
Platts launched two price assessments on May 3, 2010 for Bakken Blend crude oil to provide transparent price discovery for this oil stream. Our editors examine these new assessments in depth and provide production estimates and quality information for the Bakken Shale Formation. The authors also discuss nearby pipeline and rail infrastructure projects.
Platts Oil Pricing and Market-on-Close Methodology Explained
Published March 2010
This backgrounder document answers important questions regarding Platts’ role in the pricing of crude oil and how our prices are used. We also discuss Platts’ Market-on-Close (MOC) assessment process and how MOC works in real life.
The Evolution of Platts' Asia Gasoil Assessments Towards Cleaner Fuel Standards
Published January 2010
Platts began assessing gasoil markets in Singapore almost 30 years ago. Platts editors address here the gradual emergence of low sulfur markets prompting many questions about when a new, low-sulfur benchmark for contract reference pricing might emerge. The editors also reveal Platts’ views on quality standards in the Asia Pacific 10ppm sulfur market, which has prompted much discussion at Platts’ methodology forums and industry events for several years.
Trends in Americas Physical and Futures Oil Market Following Platts' Alignment of Price Inputs at 3.15pm ET (PDF)
Published July 2009
Platts provides a thorough review of physical and futures markets to fully gauge the impact of the full alignment launch in the Americas oil assessment process at 3:15 pm ET. From the onset, the proposal prompted several concerns from market participants, including the possibility that there would be a dearth of liquidity in the futures market at 3:15 p.m. ET. The results compellingly show that liquidity at 3:15 p.m. ET is indeed rich.
Trends in Americas Physical and Futures Oil Market Following Platts' Alignment of Price Inputs at 3.15pm ET (Excel)
Published June 2009
MOPWIN as a Price Reference for India's Refined Oil Products
Platts editors provide an in-depth examination of the growth of India’s oil markets in the past five years and present answers to the most frequently asked questions about Platts’ Indian oil benchmark—the Mean of Platts West India Netbacks (MOPWIN).
Alignment of US Fixed Price and Differential Crude Oil and Products Assessments at 3.15pm ET
Published May 2009
On June 1, 2009, Platts made a major change to its Americas oil assessment processes, aligning all price inputs to 3:15 pm Eastern Time. This report details the methodology Platts used in making this change.
Alignment of US Fixed Price and Differential Crude Oil and Products Assessments Q & A
On June 1, 2009, Platts made a major change to its Americas oil assessment processes, aligning all price inputs to 3:15 pm Eastern Time. This Q & A details the methodology Platts used in making this change.
Platts Assessment Process for Determining the Value of Futures at 3.15pm ET
Platts is committed to providing assessments reflective of actual market value for spot commodity markets globally. This paper provides in-depth background on Platts' methodology for the June 2009 change to 3:15 p.m. ET in Platts Americas Oil Assessments.
Price Disparities and Impacts on Assessments Observed From Use of Futures at 2.30pm or 3.15pm ET
On February 16, Platts announced a proposal to use prevailing futures prices at 3:15 pm ET rather than 2:30 pm as part of its price assessment process for Americas oil and petrochemicals. The data from this report proves that the price difference between the two times is significant, and prices are only the same on random and rare occasions. Therefore, the data collected during Platts’ ongoing comparison of price activity clearly indicates that the correct course of action was to synchronize all price inputs to the same point in time.
Platts Proposal to Launch Americas Crude Marker (ACM) Q & A
Published March 2009
This question and answer document examines Platts' proposal of the Americas Crude Marker as a means to focus some of its US crude assessment processes on market conditions in the US Gulf Coast. And, Platts discusses its concerns about the impact divergent West Texas Intermediate (WTI) pricing has on its own assessment processes.
The Increasing Divergence of WTI Pricing from World Markets
Platts routinely reviews markets and methodologies in its role as an impartial and independent publisher. In this paper, Platts discusses its then proposed launch of the Americas Crude Marker to help address problems with the primary US crude oil benchmark.
Platts Americas Proposes Use of 3.15pm ET Futures Values in its Assessment Process
Published February 2009
Understand the rationale for Platts' decision to use the 3:15 p.m. Eastern Time (ET) futures prices for the underlying basis of its physical and derivative Americas oil assessments. The report discusses methodology used in a question and answer format.
Dated Brent as a Solution to Pricing of Crude Oil in Asia
Published October 2008
A decline in production from major crude fields in Asia has encouraged refiners to start pricing crude oil supply contracts using Dated Brent as a reference price. Platts editors examine this trend and its growth within Asian oil markets. The paper also discusses Platts’ Asian Dated Brent assessment, which accounts for changes in prices from market close in Europe to market close in Asia.
Specification Details for 10ppm Gasoil in Singapore
Platts Spot to Rack: Rationale, Methods and Frequently Asked Questions
Published September 2008
Platts Spot To Rack provides rack players with the most respected estimate available of true rack-level supply costs. This discussion paper includes rationale, methods and frequently asked questions about Platts Spot to Rack.
The Forties De-escalator
This document addresses questions and issues related to the Forties crude oil guidelines. Background information and Platts subscriber notes about the de-escalator issue are included.
CIF NEW ULSD 10ppm Basis ARA November 2007 Assessment Launch FAQ
Published October 2007
Platts launched an assessment of 10ppm CIF diesel cargoes in Northwest Europe on November 1, 2007. This document contains the note announcing the launch and provides questions and answers designed to explain and clarify various issues raised by the industry.
Kadriah 1 FAQs
Published August 2007
Midstream gas business, but recent changes are making it more difficult to maintain accuracy using a manual system. This paper discusses the three main reasons businesses should consider automating back office price feeds, and how making this change will quickly pay off.
Forties Crude Oil Guidelines Q & A
Published July 2007
Platts held a forum on June 19, 2007, regarding its June 7 decision to assess Dated Brent and related North Sea instruments with a quality threshold for Forties crude oil to ensure assessments continue to reflect oil of normal qualities. This question and answer document discusses the Forties crude oil guidelines.
European Fuel Oil Barge Amendment to Delivery/Loading Dates
Published November 2006
On November 22, 2006, Platts temporarily amended the loading/delivery dates for which it would accept bids and offers on high sulfur fuel oil barges FOB Rotterdam in its MOC assessment window. This question and answer document provides background about this decision.
Why Platts Uses 16.30 Values in the Valuation of Middle Distillate Assessments
This document answers frequently asked questions regarding Platts’ use of market data, including ICE gasoil futures at 16.30 in the formation of middle distillate assessments.
Platts US Gasoline & Distillates Q & A
Published October 2006
Platts began reflecting market values at the close of the market for its US Gasoline and Distillates assessments on November 15th, 2006. The methodology is commonly referred to as a market-on-close (MOC) assessment. Platts prepared this document to answer commonly raised questions regarding the market-on-close assessment process.
Explanation of the MOPS Strip
Published September 2006
Published by Platts for certain Singapore oil markets, the MOPS strip is the value the market assigns to future Platts assessments. This discussion paper provides a thorough explanation of the MOPS strip, including how it is determined and its application in Platts’ assessment process.
Platts US LPG Q & A
This question and answer document examines Platts' decision to modify its assessment methodologies and reflect market values at the close of the market for its US LPG assessments. The methodology is commonly referred to as a market-on-close (MOC) assessment process. This document answers common questions about this methodology.
Platts US Fuel Oil and Feedstocks/Blendstocks Q & A
Published January 2006
Find answers to the most commonly asked questions about the Platts market-on-close (MOC) assessment process--which reflects values at the close of the market for US fuel oil, feedstock and blendstock assessments.
Upper Zakum Q & A
Upper Zakum is a crude oil that meets most of the requirements necessary to act as an alternative delivery grade in Dubai trading. Platts began including Oman and Upper Zakum as alternative delivery into the Dubai bids on February 1, 2006. This question and answer document examines this decision in detail.
Platts Move to a 16.30 European Assessment Close
Published October 2005
This factsheet summarizes the key parameters of Platts' time change to 16:30 London time in its daily assessments for crude oil, European oil products, oil derivatives and the main petrochemical products. A timetable of Platts' communications with the industry on the move to a 1630 close is provided.
Sour Crude Pricing: A Pressing Global Issue
Published June 2005
This paper examines the paradox that as sour crudes grow in importance, the debate about pricing benchmarks has continued to focus on light crudes such as Brent and WTI--the markers for the last 20 years. But as the world becomes critically reliant on heavier and higher-sulfur streams, the emphasis needs to be increasingly on sour crudes since these grades are assuming more importance in the price discovery process.
Review of the Partial Dubai and Oman Price Discovery Mechanism
Published November 2004
This paper examines price-discovery issues of broad interest to the market -- particularly the impact of Platts' Oman/Dubai partials trading mechanism on price discovery for Middle Eastern crude oil grades.
Platts BFO Assessments
Published June 2004
One in a series of discussion papers examining price-discovery issues of broad interest to the oil markets, this paper analyzes the impact on the Platts BFO assessment methodology following the introduction of Grane into the Oseberg stream.
Raising Transparency Standards in Urals Markets
Platts aims to transparently and robustly assess and publish market-reflective values for Urals. This position paper clarifies Platts' assessment standards for Urals CIF Med and explains the rationale behind formalizing its normalization process and introducing an 80,000 mt FOB Black Sea Urals assessment.
Jet Fuel Premium Assessment and the New Jet AV Fuel Formula
Published September 2002
This document discusses Platts' Jet Fuel Premium Assessment and the Jet AV Fuel Formula. Also included are background information about the changes and answers to frequently asked questions.
Platts JKM and its growing relevance in spot contracts
Published February 2012
Platts’ daily Asia spot LNG price assessment, the Japan Korea Marker, is used as the outright pricing basis for up to 40% of spot LNG deals in the region.
Platts Asia LNG price assessments: A FAQ
Platts assessments can be used by anyone needing timely, independent spot LNG price information. Find out more here.
There are no documents currently available for this commodity.
Bringing Transparency to the Petrochemical Markets
Published January 2007
Never has the need been greater for price transparency in the petrochemical market than today. With continued volatility, Platts makes a case for transparency and discusses its response with the Market on Close (MOC) system—assessesing petrochemical prices by using the market value as of the close of the trading day or week. Platts has made this open methodology available for the global community to see and comment on.
UCOME and TME pricing: Why Platts clarified its approach to UCOME prices and discontinued TME prices
Published August 2014
Platts’ view is that the UCOME and TME market is better served through full and transparent publication of all discrete pricing information, rather than through a single-point assessment of value at this time.
Glycerine pricing: Why Platts discontinued publication of Glycerine prices
Platts discontinued the assessments, but not the coverage of the glycerine market, effective July 24, 2014. Platts has observed that the number of pricing indications that exist for the glycerine market is limited by the size and nature of this market. The market is very fragmented from a quality and end-use perspective.
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