SUBSCRIBER NOTE: Platts to keep Forties de-escalator at $0.20/barrel for July

Effective July 1, the sulfur de-escalator to be applied to 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% weight standard, unchanged from June.

The de-escalator should apply to cargoes loading from July 1, 2015.

Platts has assessed this de-escalator level after reviewing the differential between low and high sulfur products, as well as the difference in value between North Sea crudes and comparable heavy, sourer crudes, such as Urals.

A rationale for this decision will be available shortly on the 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.