SUBSCRIBER NOTE: Platts clarifies Cash BFOE partial settlement mechanism in MOC

Platts wishes to clarify that bids and offers for Cash BFOE published during the Platts Market on Close assessment process reflect BFOE transactions of 100,000 barrels (partials). If a single buyer and a single seller transact six partials of 100,000 barrels with each other, the transactions converge into one physical Cash BFOE cargo of 600,000 barrels.

If, after all convergences have been completed, any two counterparts have outstanding partials that do not amount to a 600,000-barrel cargo, those partials are to be financially settled using the Platts assessment published on the final working day of the calendar month for the relevant contract month (which is calendar month M+2).

For example, if a single buyer and a single seller trade six July partials with each other in the Platts MOC process prior to 4:30 pm London time on May 29, 2015, the partials converge into a full physical cargo of 600,000 barrels for loading any day in the month of July, according to standard nomination procedures as detailed in the SUKO-90 contract and explained on the Platts website http://www.platts.com/IM.Platts.Content/MethodologyReferences/MethodologySpec s/Crude-oil-methodology.pdf.

However, in the same example, if two counterparties trade five July partials, then the financial settlement of the 500,000 barrels is based on the Platts assessment for July Cash BFOE published on May 29, 2015.

Please send all comments to europe_crude@platts.com and pricegroup@platts.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.