SUBSCRIBER NOTE: Platts to revise laycan for East Canada crude assessments July 5

S&P Global Platts will revise the loading period reflected in its East Coast Canadian crude cargo assessments and the underlying Canada Dated Brent strip with effect from July 5, 2017. This change was initially proposed on July 28, 2016, and had previously been set for implementation on June 1, 2017.

To capture the majority of Atlantic Canadian crude trades, from July 5, Platts will reflect cargoes loading 30-60 days forward in its published outright and differential assessments. To reflect a forward market value over the same time period, Platts will also update the calculation of the underlying Canada Dated Brent strip to 33-63 days forward from the date of assessment.

The updated strip will be published under a new product code as "Canada Dated Brent Strip 33-63 days" appearing on PGA pages 230 and 1250 and in Crude Oil Marketwire and Oilgram Price Report. The existing Canada Dated Brent strip will be renamed "Dated Brent Strip 31-45 Days" and will continue to be published under the product code AALDJ00 in Crude Oil Marketwire and in the Platts Pricing Database.

These changes were first proposed in a subscriber note published July 28, 2016. The subscriber note can be found here: http://www.platts.com/subscriber-notes-details/10021127 Observed trade data shows that most physical trading of East Canadian crude focuses on cargoes loading between 30 days and 60 days forward from the date of trade and assessment, with pricing typically taking place 1-5 days after loading.

Currently, Platts considers a variety of trade data in its published assessments, including spot transactions for cargoes loading six to eight weeks forward. Platts applies differentials observed in the spot market to the Canada Dated Brent strip (database code AALDJ00), which currently reflects a forward market of 31-45 days after the date of assessment.

The change will affect Platts assessments for cargoes loading in Newfoundland. The outright price assessments that will be affected are: Terra Nova (AAJUH00), Hibernia (AAJKK00) and White Rose (AAVJX00). The differentials for Terra Nova (AAJUJ00), Hibernia (AAJKM00) and White Rose (AAVJY00) would be applied against the newly calculated 33-63 day Canada Dated Brent strip.

These assessments appear in Platts Global Alert pages 230, 232, 296 and 1250, in Platts Crude Oil Marketwire, Oilgram Price Report, and North American Crude and Products Scan.

Please send any further comments or feedback to americas_crude@spglobal.com and pricegroup@spglobal.com.

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