SUBSCRIBER NOTE: Platts to raise Forties sulfur de-escalator to $0.20/b for March

Effective March 1, the sulfur de-escalator to be applied to Forties cargoes and related instruments in the Platts North Sea assessment process will be $0.20/barrel per 0.1% weight of sulfur over the 0.6% weight standard, up from $0.15/b in February.

The de-escalator should apply to cargoes loading from March 1, 2015.

Platts has assessed this de-escalator level after reviewing the differential between low and high-sulfur products, as well as the difference in value between North Sea crudes and comparable heavy, sourer crudes such as Urals.

A rationale for this decision will be available shortly on the Platts website, www.platts.com.

Platts guidelines for its sulfur de-escalator use three significant figures for determination of sulfur-related payment. The test reflecting this figure should be the ASTM-D2622. Forties cargoes and all related instruments, including BFOE cash forwards, bid or offered through the Platts system must adhere to this standard.

In addition, Platts will publish the sulfur de-escalator, representing the dollar value per 0.1% weight of sulfur, in its crude oil publications.