SUBSCRIBER NOTE: Platts Singapore Gasoil reflects 10 ppm sulfur from 2018

S&P Global Platts has lowered the sulfur specification of its flagship Singapore and FOB Arab Gulf Gasoil assessments to 10 ppm from the current 500 ppm on January 2, 2018.

The lower sulfur specifications reflect changing supply and demand trends across the regions, as well as the fact that global waterborne diesel trade is now predominantly maximum 10 ppm, known as ultra low sulfur diesel.

Platts opened a consultation on this proposed change in September 5, 2016 (http://www.platts.com/subscriber-notes-details/27664052). Since that time it has discussed the proposal in open forums, online webinars and a variety of bilateral meetings involving a full range of stakeholders. Platts announced on December 5, 2016 (http://www.platts.com/subscriber-notes-details/27723543) that it would move ahead with the change.

DETAILS OF CHANGE:

Assessment Code FOB Singapore CODE REMARKS Gasoil 10 ppm AAOVC00 No changes Gasoil 50 ppm AAPPF00 No changes Gasoil 500 ppm AAFEX00 No changes Gasoil 0.25% AACUE00 No changes Gasoil POABC00 Changes to 10ppm sulfur

FOB Arab Gulf Gasoil 10 ppm AAIDT00 No changes Gasoil 50 ppm AASGJ00 No changes Gasoil 500 ppm AAFEZ00 No changes Gasoil 0.25% AACUA00 No changes Gasoil POAAT00 Changes to 10ppm sulfur Gasoil LR2 AAKBT00 Changes to 10ppm sulfur

C+F Japan Gasoil POABF00 No changes

FOB Okinawa Gasoil POAIW00 No changes

FOB Korea Gasoil POAIE00 Changes to 10ppm sulfur

C+F Australia Gasoil 10 ppm AAQUD00 No changes

FOB West India Gasoil 10ppm AAQWN00 No changes Gasoil 500 ppm AAQWP00 No changes Gasoil 0.25% AAQWR00 No changes

FOB West India Gasoil 10 ppm AAQWO00 No changes Gasoil 500 ppm AAQWQ00 No changes Gasoil 0.25% AAQWS00 No changes

$/mt C+F China Gasoil LP POAFA00 Changes to 10ppm sulfur Gasoil 0.2% AALEK00 No changes

FOB Singapore premium/discount Gasoil 10 ppm AAOVD00 Basis changes to 10ppm sulfur Gasoil 50 ppm AAPPH00 Basis changes to 10ppm sulfur Gasoil 500 ppm AAFFB00 Basis changes to 10ppm sulfur Gasoil 0.25% AACQI00 Basis changes to 10ppm sulfur Gasoil POAIC00 Basis changes to 10ppm sulfur

FOB Arab Gulf premium/discount Gasoil 10 ppm AAIDU00 Basis changes to 10ppm sulfur Gasoil 50 ppm AASGK00 Basis changes to 10ppm sulfur Gasoil 500 ppm AAFFD00 Basis changes to 10ppm sulfur Gasoil 0.25% AACUC00 Basis changes to 10ppm sulfur Gasoil POAID00 Basis changes to 10ppm sulfur

FOB Okinawa premium/discount Gasoil POAIY00 Basis changes to 10ppm sulfur

FOB Korea premium/discount Gasoil POAIG00 Basis changes to 10ppm sulfur

C+F China premium/discount Gasoil AABJZ00 Basis changes to 10ppm sulfur

Mean of Platts Singapore strip 15-30 days forward MOPS Gasoil AAPJY00 Changes to 10ppm sulfur

FOB Fujairah Gasoil 10 ppm AFUJP00 No changes Gasoil AFUJK00 Changes to 10ppm sulfur

Mean of Platts Arab Gulf strip Gasoil AFUJL00 Changes to 10ppm sulfur

Platts will also assess differentials and strips in these markets basis gasoil with maximum 10 ppm sulfur.

Note that Platts current C+F Japan Gasoil assessment already reflects maximum 10 ppm sulfur gasoil.

PHYSICAL ASSESSMENTS: As of January 2018, Platts publishes assessments for four grades of gasoil on an FOB Singapore basis: medium sulfur grade 0.25% (2,500 ppm); low sulfur gasoil 500 ppm and 50 ppm; and ultra low sulfur diesel 10 ppm.

In the Middle East, Platts publishes assessments for four grades of gasoil on an FOB Arab Gulf basis: 0.25% (2,500 ppm), 500 ppm, 50 ppm and 10 ppm. Platts also publishes two grades on an FOB Fujairah basis: 500 ppm and 10 ppm.

Under the terms of the announced change, the assessments named "Gasoil" will, on January 2, 2018, be changed to reflect 10 ppm sulfur, while those titled "Gasoil 0.05%" will remain separate and continue to reflect 500 ppm sulfur.

Platts has no plans to discontinue any of its Asia and Middle East gasoil assessments as a result of this change.

DERIVATIVE ASSESSMENTS: Platts publishes assessments for Singapore Gasoil derivatives that settle against Platts FOB Singapore Gasoil assessment covering 12 calendar months forward. While these announced changes do not affect the methodology of these assessments, Platts derivatives assessments reflect the change in the underlying basis from the January 2018 contract month forward, and have done since the announcement of the change.

On August 25, 2016, Platts published a white paper titled "Platts Asia Gasoil Benchmarks -- Next Stage of Evolution," which discussed in greater detail industry trends that could warrant a change in the gasoil sulfur specifications. In addition, Platts also published an FAQ in relation to the benchmark change. These can be found at http://www.platts.com/price-assessments/oil/fob-singapore-gasoil. Please send all comments, feedback and questions to asia_products@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.