Need for explicit positions during Americas MOC

On May 5, 2009, Platts announced its intention to complete the process of aligning all pricing elements -- fixed price, differentials and futures inputs -- in its Americas crude oil and products price assessments at exactly 3:15 pm Eastern Time, effective June 1, 2009.

In those markets where commodities trade at differentials to futures, the prevailing futures value as assessed by Platts at 3:15 pm ET will be used in the assessment process.

Market participants submitting bids and offers on a differential exchange for physical (EFP) basis to futures during the Platts Americas oil Market on Close assessment process should be explicit in their positions, including month of reference for the EFP.

For any positions submitted as an EFP versus a futures contract (i.e. July +1.00 cents/gal), Platts will use the prevailing futures value at 3:15 pm ET to calculate the flat price for the assessment.

If parties wish to express positions as an EFP to the 2:30 pm ET same-day settlement value of a futures contract (i.e. today's July settle +1.00 cents/gal), Platts will accept this information. The usage of a differential in this fashion would naturally result in a fixed price equivalent.

For any floating EFP positions (i.e. EFPs based on an average of forward settlements around lifting/delivery), Platts will use the prevailing futures at 3:15 pm ET to calculate the flat price for the assessment.

Market participants can also express positions on a fixed price basis, and Platts will consider both fixed prices and EFP differential positions in its assessment processes.

Please contact Esa Ramasamy, +1 713-658-3292, esa_ramasamy@platts.com, with a cc to pricegroup@platts.com, for any questions and comments.