SUBSCRIBER NOTE: Merchantability of gasoil in Platts MOC assessments

Platts would like to remind market participants that the Platts gasoil assessments reflect material that is of merchantable quality. As stated in Platts published methodology: "cargoes must at all times be deemed to fall within industry standards including merchantability of the product." Grades which are not widely merchantable -- for instance, gasoil with contaminants that are banned in certain major importing countries, including fatty acid methyl esters, or FAME -- will not be reflected in the assessments. Platts understands that Indonesia, Australia, Japan and Sri Lanka all restrict FAME content in gasoil imports to "nil". ASTM D7371 is a test used by some industry participants to detect FAME in gasoil and may be considered in the Platts assessment process to determine if the gasoil is atypical. Under Platts methodology, grades that are not of a merchantable quality are not considered in the assessment process. Please send any comments or queries to asia_products@platts.com and pricegroup@platts.com. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received, and will make comments not marked as confidential available upon request.