SUBSCRIBER NOTE: Platts to assess Forties de-escalator at 10 cents/b for June 2017

Effective June 1, 2017, the sulfur de-escalator to be applied to Forties cargoes and related instruments in the Platts North Sea assessment process will be 10 cents/b per 0.1% weight of sulfur over the 0.6% weight standard, unchanged from May.

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

Platts has assessed this de-escalator level after reviewing the recent stability in a number of sweet/sour crude spreads, despite an increase in flat price. The general stability in the premium of North Sea grades versus sourer grades in Europe looks to be a continuing trend, particularly given market expectation of an extension in the OPEC/non-OPEC agreement, which has resulted in lower high sulfur crude volumes globally.

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.

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