Subscriber note: Platts to amend Middle East crude cargo size to 500,000 barrels

Following extensive consultation, Platts plans to amend the full cargo size reflected in its Dubai, Oman and Upper Zakum crude oil spot price assessment process to 500,000 barrels with effect from November 1, 2013. The proposed change in cargo size would therefore take effect for cargoes loading in January 2014 onwards. Currently, the cargo size of Dubai, Oman or Upper Zakum used in Platts? assessment process is typically 475,000 barrels. Partial cargoes, trading in lots of 25,000 barrels each, currently converge into a full physical cargo when a 19th partial is traded between a single buyer and a single seller. The seller declares the grade of crude to be delivered immediately upon full convergence. Under Platts? revised methodology, a 500,000-barrel cargo would require 20 partials for physical delivery instead of the current 19-partial system. Operational tolerance will remain as currently practiced and defined under Platts' methodology as 1,000 barrels maximum. This proposal was first announced on August 14, 2012, and reflects the evolution in volume standards for Middle East crude oil loadings where current deliveries of a cargo size of 500,000 barrels typically occur with a minor operational tolerance of 1,000 barrels. Please send comments or queries to asia_crude@platts.com and pricegroup@platts.com.