SUBSCRIBER NOTE: Platts announces Oseberg, Ekofisk crude Quality Premiums for June-loading cargoes

Effective May 1, 2014, the North Sea Oseberg crude Quality Premium for June-loading cargoes will be $0.7383/barrel. The North Sea Ekofisk crude Quality Premium for June-loading cargoes will be $0.6098/barrel. The month-ahead Ekofisk and Oseberg QPs can be found on Platts Global Alert pages 1210 and 1212, in the Crude Oil Marketwire and under codes AAXDZ00 and AAXDX00, respectively. The current-month QPs can be found on the same page and under codes AAXDY00 and AAXDW00, respectively. Under its updated methodology, effective May 1, Quality Premiums are calculated for Oseberg and Ekofisk using one month of data, compared to two months of data in the previous methodology. For example, the QP announced on May 1 reflects assessments conducted from April 1 to April 30 inclusive. Platts believes that this will make QPs more responsive to, and more reflective of, current price trends in the physical markets. Platts notes that a full month of assessment data typically embraces more than 40 loading days in the North Sea dated cargo crude oil market. A month of data, coupled with a calculation ratio, should therefore continue to appropriately mitigate the potential impact of maintenance programs, while preserving Platts core aim of ensuring that QPs appropriately represent a prevailing value of crude for prompt physical delivery. CALCULATION METHODOLOGY: In this update, Platts has increased the ratio of the net price differences between these grades and the most competitive grade of crude among Brent, Forties, Oseberg and Ekofisk. The ratio has been increased to 60% of the net difference, up from 50% in its previous calculation process. Platts believes that increasing the ratio will increase the likelihood that Oseberg and Ekofisk cargoes will be readily deliverable into BFOE nominations, and further increase their relevance to the Dated Brent assessment process. QP THRESHOLD: Platts has revised the thresholds applied for minimum QPs to ensure that the lowest QP for Oseberg and Ekofisk can be 25 cents/barrel, or else a QP of zero is published. Under its revised calculations, a QP of zero would be announced if 60% of the observed price difference equates to less than a net 25 cents/b. This means that if 60% of the observed premium leads to a value of less than 25 cents/b, a QP of zero would be published. ANNOUNCEMENT OF QPS: Platts will continue to announce QPs on the first publishing day of each month, a month prior to the escalators coming into effect. Platts has made available a Question & Answer document in English, Russian and Mandarin that further elaborates on commonly raised questions from all respondents on its Dated Brent homepage at http://platts.com/price-assessments/oil/dated-brent. Please send any comments and queries 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.