Platts Mulls Launching Middle East Oil Products Benchmarks

By Miriam Malek

LONDON--Platts is considering launching a new assessment for oil products trading in the Middle East, the U.S. price reporting agency said on Monday.

The company told a forum in London that it was considering new prices across the barrel--including heavy fuel oil, middle distillates and light ends. Platts said that jet fuel, naphtha, diesel, gasoline and fuel oil were at the forefront of discussions on oil products benchmarks in the Middle East.

Platt's said the decision made sense given the volume of oil products which are coming out of the region. At the moment, Middle East oil products prices are typically assessed on a netback basis to Singapore or Japan--the price of products in these areas, adjusted for shipping from the Middle East.

The company will consider launching the price as a free-on-board, known as FOB, assessment from the port of Fujairah.

"[It is] not as divergent as Europe, but Fujairah is a key part of how [consultations of new assessments are] going forward," said Jonty Rushforth, the director of oil and shipping price group at Platts.

Write to Miriam Malek at [e-mail]

(END) Dow Jones Newswires

February 08, 2016 07:42 ET (12:42 GMT)

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