Platts to change monthly average calculations

Following Platts' introduction of midpoints to certain of its daily physical oil assessments, Platts proposes to change the way that it calculates monthly averages for all daily assessments that have associated midpoints.

With effect from June 1, 2012, Platts will publish the monthly average of the high, low and midpoint of each affected assessment to three decimal places.

In each case, the average will be created by averaging the data point itself -- so the average high will be the average of the highs for the month; the average low will be the average of the lows for the month, and the average midpoint will be the average of the midpoints for the month.

This is a change from the calculation Platts uses to create monthly averages for daily assessments that do not have associated daily midpoints.

In those cases, Platts currently generates a monthly average midpoint by creating an average of the highs (to two decimal places only); an average of the lows (to two decimal places only); and then creating a simple average of those two points for the monthly average midpoint, which is also currently published to two decimal places.

Platts will amend its monthly average calculations to reflect the new approach as daily assessments are upgraded to show daily midpoints, and provide notice in advance of such changes.

Currently Platts provides daily midpoints for global crude oil assessments.

Please send comments and queries by May 1 to oilgroup@platts.com and pricegroup@platts.com.