Aramco Trading Company to join Asia crude cargoes MOC - Platts

Quantum Commodity Intelligence - Aramco Trading Company (ATC) has advised S&P Global Platts that it would like to participate in the Platts Asia Market on Close (MOC) assessment process for Asia crude oil cargoes, Platts reported on its website Wednesday.

ATC has been an active participant in the Platts refined products MOC – colloquially referred to as 'the window' – for many years but has steered clear of crude oil.

Sources say that Saudi Arabia's policy has been not to directly take part in benchmark crude oil price formation, which would create a conflict of interest with its role as the world's largest exporter of crude.

However, the Platts note specifically refers to "crude cargoes," suggesting ATC will only take part in the relatively illiquid full-cargo market in the MOC, as opposed to the partials market that sets the benchmark Dubai price.

Aramco sells its crude to Asian customers on a 50:50 Platts Dubai/DME Oman formula, making it very unlikely that ATC would become an active participant in the Dubai partials market, or for that matter DME Oman. 

Dubai partials are traded in lots of 25,000 barrels, which becomes a cargo after 20 partials with the same counterparty. The seller can nominate Dubai, Oman, Upper Zakum, Al Shaheen or Murban. 

Saudi Arabian crude is primarily sold to customers on a term basis, but ATC is expected to be an increasingly active participant in trading non-Saudi grades.

Platts said it has reviewed Aramco Trading Company and will consider information from Aramco Trading Company in the Asia assessment process for Asia crude cargoes, subject at all times to adherence with Platts editorial standards.

Platts will publish all relevant information from Aramco Trading Company accordingly.

Platts further stated it welcomes all relevant feedback regarding MOC participation.

Platts considers bids, offers and transactions by all credible and creditworthy parties in its assessment processes.