Platts, part of S&P Global Commodity Insights, has decided to no longer include Russia as part of the open origin basis of its MTBE assessments in Asia, effective immediately.
Market feedback to Platts has highlighted that Russian MTBE is not part of the fungible spot market and companies operating around the Singapore hub are increasingly stipulating that they will not trade Russian-origin MTBE.
Platts on Feb. 15, 2023, sought feedback on Russian material in Asian MTBE assessments driven by the observation of an increasing number of market participants restricting, or pre-emptively seeking to exclude Russian-origin MTBE, in their recent spot trading activity.
The consultation note is available at: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/021523-platts-seeks-feedback-on-russian-material-in-asian-mtbe-assessments
Platts has also observed that there has not been any significant flow of Russian-origin MTBE cargoes into Singapore. Singapore did not import any Russian-origin MTBE over January-December 2022, Enterprise Singapore data showed.
However, there are concerns from market participants about potential new flows from Russia to Asia after the EU sanctions on Russian oil products came into force on Feb. 5, 2023.
This decision also follows on from a subscriber note published by Platts on Feb. 14, 2023, announcing that Platts no longer includes Russia as a potential origin source in Asia, Middle East gasoline assessments: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/021423-platts-no-longer-includes-russia-as-potential-origin-source-in-asia-middle-east-gasoline
Platts has therefore decided its MTBE assessments in Asia will no longer include Russia as a potential delivery source as part of their open origin basis, effective immediately.
Platts MTBE assessments in Asia include FOB Singapore (PHALF11) and the FOB Singapore MTBE factor (AAXIW00).
Russian-origin product has already been excluded from Platts benchmark cargo price assessments for naphtha, gasoil and jet fuel in Asia, as well as from all refined product assessments in Europe.
In a subscriber note published June 23, 2022, Platts clarified the origin standards reflected in assessments that exclude Russian-origin material.
In the note, Platts stated that its assessments that exclude Russian-origin material reflect oil that is not wholly, or in part, produced, manufactured or processed in Russia, or exported from Russia.
These assessments also reflect transactions where the performing vessels are not Russian flagged/registered or Russian owned.
The subscriber note is reachable at: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/062322-platts-clarifies-standards-for-assessments-that-exclude-russian-origin-material
Please send all feedback, questions, or comments to petchems@spglobal.com and PriceGroup@spglobal.com.
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.