Subscriber note: Platts launches Light Houston Sweet assessment

On July 26, 2013, Platts launched a new assessment for crude oil trading in Houston. The new assessment, called Light Houston Sweet (LHS), reflects the value of light sweet crude flowing into Houston, Texas, from the Permian Basin, Eagle Ford and Cushing, Oklahoma. This new assessment reflects 1,000 b/d of ratable crude, for a minimum of 25,000 barrels in total, delivered over the course of the prompt pipeline month on a Free In Pipe (FIP) basis. On July 26, the LHS assessment will reflect crude oil for ratable delivery in the month of August. The assessment is for crude delivered out of three Houston terminals: Magellan East Houston Terminal, Enterprise Houston Crude Oil (EHCO) Terminal, and the Oil Tanking Houston Terminal. As Houston crude transportation infrastructure develops, Platts may consider additional terminals for inclusion in its LHS assessment basis. Platts reflects WTI Midland specifications at East Houston in its LHS assessment, and may normalize Domestic Light Sweet and Eagle Ford bids, offers, and transactions at Houston to a WTI Midland specification basis. The quality specification basis for WTI Midland at Houston are listed in the table below. The new assessment, which is published as a flat price, takes into account trading on both a flat price and a floating price basis. Please send any questions, suggestions, or comments to americas_crude@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.

WTI Midland at Houston API 42 degrees maximum Sulfur 0.45% maximum Micro Carbon Residue 1.1% wt typical Vanadium 4ppm typical Nickel 2ppm typical Total Acid Number (TAN) 0.1 mg KOH/g typical