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BP suspended from Europe's main diesel pricing platform: traders
[LONDON] BP has been suspended from the main European diesel trading platform, significantly reducing its ability to participate in setting the benchmark price of the fuel, traders said.
Traders said BP had been "boxed out" of the Platts Market on Close (MOC) afternoon assessment platform of diesel barges for"not performing their contract obligations" regarding the delivery or loading of barges.
BP declined to comment on the report. Platts said: "As a policy, Platts does not confirm or deny when a company is under editorial review." It was unclear how long the ban would last. Platts has temporarily barred firms from participation in its MOC before due to market turmoil or concerns over individual companies or trading behaviour, and the exclusion is often brief.
BP was one of the most active participants in the MOC in January and early February. In the week of Feb 1 alone it bought around 115 barges, or around 230,000 tonnes, of diesel, an unusually high volume compared to previous weeks.
Vitol, the world's largest trading house, was a major seller that same week.
It is not rare for major trading houses to buy or sell large volumes in the assessment window.
BP last participated in the physical barge platform on Feb 9, though it has been active in swaps trading and the physical cargo window since then.
Platts competes with Thomson Reuters in providing news and information to the energy markets.