SUBSCRIBER NOTE: Platts proposes to amend Europe diesel, gasoil methodology

Platts is proposing to introduce a series of amendments to the typical bids and offers that are published in its Market on Close assessment process for European ultra low sulfur diesel and gasoil barges. These changes, which are proposed for introduction with effect from January 2, 2015, would further standardize information considered in Platts final assessments, and allow for more efficient publishing and interpretation of physical market data. These proposals follow a middle distillates technical workshop hosted by Platts on April 28, in London. The following are Platts' proposals for various aspects of the current middle distillate barge methodology: VOLUMES: In diesel and 0.1% gasoil, Platts proposes to reflect bids and offers of 1,000-3,000 mt, amended from the current 1,000-5,000 mt range. Under this proposal, the only size range considered for assessment purposes would be 1,000-3,000 mt. Fixed volume bids and offers would no longer be reflected. Buyers would retain the right to nominate a volume when expressing an intention to lift such an offer, and likewise when a seller expresses interest in a published bid. In 50 ppm gasoil, Platts' assessments already reflect 1,000-3,000 mt. LOADING DATES: In diesel and 0.1% gasoil, Platts proposes to publish bids and offers for fixed laycans of five days each -- the front, middle and back end dates reflected in its assessments. Currently, any laycan within the 3-15 days (Monday-Tuesday) or 5-15 days (Wednesday-Friday) assessment period can be bid or offered. Under this proposal, a buyer would retain the right to nominate a barge loading on one specific day within the five-day laycan agreed at time of trade, following the end of the MOC process. Platts' 50 ppm gasoil barge assessment already reflects fixed loading periods of five days each -- front, middle and back end dates. LOADING PORTS: Platts does not have any plans to modify the loading ports reflected in its 0.1% gasoil and diesel barge assessments. These ports include Flushing, Amsterdam, Rotterdam, Antwerp and Ghent. However, for 0.1% gasoil and diesel barges, Platts proposes to standardize all published bids and offers to Amsterdam-Rotterdam-Antwerp. Under this proposal, deliveries from Flushing and Ghent would still be possible under an alternative delivery scheme that would compensate a buyer for associated increase in freight costs. Proposals on the alternative delivery options are welcome. The 50 ppm gasoil barge assessment already reflects ARA-only indications.

PRICING OPTIONS: Platts does not intend to modify the pricing options than can be reported for bids and offers submitted for publication in the European diesel and gasoil barge markets. They include outright price, floating price and the Exchanges of Futures for Physical. Platts welcomes all comments and queries to europe_products@platts.com and pricegroup@platts.com. Please send comments and queries by June 27, 2014. 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.