Platts to assess Forties de-escalator at 45 cents/b for July

Effective July 1, 2022, the sulfur de-escalator to be applied to Forties crude oil cargoes and related instruments in the Platts North Sea assessment process will be 45 cents/b per 0.1% weight of sulfur over the 0.6% weight standard, the same as in June.

The de-escalator should apply to cargoes loading from July 1.

Platts, part of S&P Global Commodity Insights, has assessed this de-escalator level after reviewing the change in outright crude value, the differential between low and high sulfur products, as well as the difference in value between North Sea crudes and comparable sourer crudes such as Urals.

A rationale for this decision will be available shortly on www.platts.com.

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, S&P Global will publish the sulfur de-escalator, representing the dollar value per 0.1% weight of sulfur, in its crude oil publications.