Subscriber note: Platts to decrease Forties de-escalator July 1 to $0.20/b

Effective July 1, 2013, the sulfur de-escalator to be applied in Forties cargoes and related instruments in the Platts North Sea assessment process will be $0.20/barrel per 0.1% weight of sulfur over the 0.6% wt standard, down from the current de-escalator value of $0.25/b, which has been in place since May 1, 2013. The de-escalator should apply to cargoes loading from July 1, 2013. Platts has lowered the de-escalator after reviewing the differential between low and high-sulfur products, as well as other indicators in the market, including the difference in value between North Sea crudes and comparable heavy, sourer crudes like Urals. A rationale for this decision will shortly be available on Platts website, 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, Platts will publish the sulfur de-escalator, representing the dollar value per 0.1% weight of sulfur, in its crude oil publications. Please send comments to oilgroup@platts.com and pricegroup@platts.com.