SUBSCRIBER NOTE: Platts to assess Forties de-escalator at $0.10/b for May 2017

Effective May 1, 2017, the sulfur de-escalator to be applied to Forties cargoes and related instruments in the Platts North Sea assessment process will be $0.10/b per 0.1% weight of sulfur over the 0.6% weight standard, down $0.05/b from April.

The de-escalator should apply to cargoes loading from May 1, 2017.

S&P Global Platts has assessed this de-escalator level after reviewing the sharp narrowing of certain sweet/sour crude spreads despite a stable and sustained flat price.

The narrowing of North Sea grades versus sourer grades in Europe appears an established trend, given the global cut in higher-sulfur crude oil volumes as part of OPEC/non-OPEC agreement of late 2016 and a weakening of North Sea crude differentials.

A rationale for this decision will be available shortly on the Platts website, www.platts.com. It can also be accessed directly using the following URL http://plts.co/ZEWBE. 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.

Please send comments to oilgroup@spglobal.com and pricegroup@spglobal.com.