Platts reviewing crude oil loadings from Qatari ports

SINGAPORE: Oil price agency S&P Global Platts, a unit of S&P Global Inc, said yesterday it has initiated with immediate effect a review of the deliverability of crude oil loading from Qatari ports.

The move follows major Arab nations cutting commercial and diplomatic ties with Qatar.

During the review period, and until further notice, Al-Shaheen crude oil loading from Qatar may not without agreement between buyer and seller be nominated upon the convergence of crude partials contracts trading during its pricing process, the company said in a note to subscribers.

Buyers and sellers may mutually agree to alternate loadings of Al-Shaheen cargoes, but sellers should not impose this, Platts said in an emailed statement with the subscriber note.

Al-Shaheen, a medium-sour Qatari crude, is one of the types that participants in the Platts crude oil pricing assessment may nominate when they have traded 20 partials contracts, or the equivalent of 500,000 barrels of oil.

Platts will continue to assess and publish independent values for other Qatari-loading crude during the review, Platts said. The review does not immediately impact existing nominations for cargoes loading in June and July against trades previously reported in the Platts pricing process, known as the marketon-close, or MOC.

“This review has been initiated because market participants have notified Platts that certain ports in the Persian Gulf, including the key bunkering location of Fujairah, put in place restrictions on vessels that have recently called, or are due to call, into Qatar ports,” it said.

Meanwhile, oil prices slipped further below US$50 (RM213) a barrel yesterday. Benchmark Brent crude oil was down 29 cents a barrel at US$49.18 by 1518 GMT, down around 8% from its level before Opec and its non-Opec allies said they were extending cuts until March 2018.

US light crude was down 18 cents at US$47.22.– Reuters