Subscriber note: Platts to announce Brent escalator decision March 15

The Platts consultation period on its proposal to use escalators in all its assessments related to Dated Brent closed March 10, 2013. Platts is now analyzing all comments with an aim to announce escalator-related changes to its assessment process on Friday, March 15 at 5 p.m. London time. Platts thanks participants who offered verbal and written comment on its public subscriber notice published February 18, 2013, and also wishes to acknowledge the broad interest and questions that surfaced in many regions of the world. Platts has been working in a consultative manner with the industry and many other stakeholders in a multi-year process to adapt its editorially based assessment process to the natural changes in the North Sea and global trading markets. Platts is clear in its goal, which is to assess crude oil markets in a manner that recognizes evolving natural market forces and to publish prices that are clearly reflective of market value. Platts is pleased to note a wide general area of convergence, reflecting deep engagement over the past 18 months. Comments were naturally varied, but all reflected the need to enable further alternative deliveries into the Brent system using an escalator system with broad acknowledgment that the earliest the escalators should apply would be for crude oil delivered from June 2013 onwards. In its initial review of comments from market stakeholders, Platts notes there is a spectrum of ideas on the crude grades, time spans and percentages proposed to be used to determine escalators. Some participants have expressed full support for either of the versions publicly available or have offered slight modifications, but all seem largely agreed on the general concepts. For instance, participants are agreed on the concept of using market assessments to determine the escalators. Some have proposed using crude differentials prevailing at month of delivery, to two months prior or versions encompassing up to four months prior. Market participants are also agreed on the need for Platts to issue its new editorial assessment standards soon, as markets trade crude for forward delivery and any change should consider those timelines. Platts thanks all interested parties for the thought and work put into comments in this review. Please send any remaining questions or comments to oilgroup@platts.com and pricegroup@platts.com.