Forties crude sulfur de-escalator unchanged

Effective June 26, 2009 and following an extensive review, Platts reaffirms the sulfur de-escalator to be applied in Forties cargoes and related instruments in the Platts North Sea assessment process to be $0.20 per 0.1% weight of sulfur over the 0.6 % wt standard.

Platts conducted an open review and consultation period with industry participants following the near-doubling of crude oil prices in 2009 and the narrowing relationship between sweet and sour crude and products.

Platts considers the prevailing level of $0.20 as appropriate and so no change to the de-escalator has been made as a result of this review.

The de-escalator will be effective until the end of 2009 unless conditions change significantly in the crude oil market and another review is required.

Platts publishes a de-escalator assessment in its publications, which is applied in all of its North Sea assessment processes.

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 method. Forties cargoes and all related instruments, including BFOE cash forwards, bid or offered through the Platts system must adhere to this standard.

For comments please contact europe_crude@platts.com and pricegroup@platts.com.