Forties crude sulfur de-escalator to be $0.40/b April 1

Effective April 1, 2011, the sulfur de-escalator to be applied in Forties cargoes and related instruments in the Platts North Sea assessment process will be $0.40/b per 0.1% weight of sulfur over the 0.6% wt standard, up $0.10/b from the current de-escalator value of $0.30 per 0.1% weight of sulfur.

The de-escalator will be effective through 2011 unless there is a significant and sustained event in the crude oil market that would necessitate an interim and open review.

Platts has revised the de-escalator in light of the recent rise in prices and the widening differential between low- and high-sulfur crudes and products.

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.

For comments please contact europe_crude@platts.com and pricegroup@platts.com.