Subscriber note correction: Platts to update Feeder spot calculations

(Corrects OSP month reference in third paragraph) Effective August 1, 2012, Platts intends to update the way that it calculates weekly Saudi Arabian, Kuwaiti and certain Libyan crude oil spot reference prices published in its Feeder Crude tables in Oilgram Price Report, and on Platts Global Alert. Weekly Feeder Crude values are averages of daily crude Yields, Netbacks and Platts spot price assessments. Where Platts spot assessments do not exist, as is the case for Saudi, Kuwaiti and certain Libyan crudes, Platts applies the prevailing Official Selling Price to that week's average of relevant underlying crude benchmarks to generate a reference spot price. For instance, a European Arab Heavy spot average for the week ending July 12 would be derived by applying Saudi Arabia's July OSP for Arab Heavy to the ICE BWAVE weekly average. Platts has typically generated Feeder Crude prices for Saudi Arabian, Kuwaiti and certain Libyan crudes using OSP data for the pricing month that prevailed for the majority of the week in question, or alternatively, the month reflected on the final day of the week averaged. Platts' updated calculation will reflect a change in pricing month during the week, should the reference month change during the week in question. Under its clarified calculations, Platts will generate a reference price for those crudes on every individual day of the week, and then average those prices to create the weekly Feeder Crude value. For instance, a European Arab Heavy spot average for the week ending August 2 would be derived by applying Saudi Arabia's July OSP for Arab Heavy to the ICE BWAVE value on July 27, July 30 and July 31; and then by applying Saudi Arabia's August OSP for Arab Heavy to the ICE BWAVE value on August 1 and August 2. The result for those five days would then be averaged to generate a weekly Feeder Crude reference spot price. Platts Feeder Crude prices are published every Friday on Platts Global Alert (PGA pages 173-177, 885, and 960-969) and the following Monday in Platts Oilgram Price Report. Please send questions or comments to oilgroup@platts.com and pricegroup@platts.com.