SUBSCRIBER NOTE: Platts proposes enhancements to US cash WTI assessments

S&P Global Platts proposes to revise its approach to assessing physical WTI in Cushing, Oklahoma, with effect from February 26, 2018.

Currently, Platts assesses physical WTI by applying an Exchange of Futures for Physical differential to the relevant NYMEX light sweet crude contract. Typically this differential is assessed at 0 cents/b.

However, Platts has observed that typical market practice increasingly sees physical WTI trading in contracts basis the calendar month average of the NYMEX frontline crude contract during the delivery month.

Therefore, Platts proposes to assess cash WTI by applying the WTI Calendar Delta to the calendar month average derivative contract. Platts would assess the WTI Calendar Delta based on observed and reported bids, offers and trades. The WTI EFP would then be adjusted based on the spread between cash WTI and the NYMEX futures contract.

The affected assessments are:

Assessment Market data code WTI M1 PCACG00 WTI M2 PCACH00 WTI M3 AAGIT00 WTI EFP AAGVT00 WTI EFP AAGVU00 WTI EFP AAGVV00 WTI-Delta AAEJK00

This change will more accurately reflect pricing for WTI crude oil at Cushing, as well as domestic crude grades that price relative to physical WTI.

Please send all feedback to americas_crude@spglobal.com and pricegroup@spglobal.com by January 31, 2018.

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 upon request.