SUBSCRIBER NOTE: Platts proposes update to East Canadian assessments

Following research and consultation with market participants, Platts proposes to update the loading period reflected in its East Coast Canadian crude cargo assessments.

Observed trade data shows that most physical trading tends to focus on cargoes loading between 30 days forward and 60 days forward from the date of trade and assessment.

As a result, Platts proposes to reflect cargoes loading 30-60 days forward in its published outright and differentials assessments.

Currently, Platts considers a wide variety of trade data in its published assessments, including cargoes loading six to eight weeks forward. Platts applies differentials observed in the spot market to the Canada Dated Brent Strip (database code AALDJ00), an underlying strip that reflects a forward market of 31-45 days after the date of assessment.

Through this proposed update, Platts would focus on cargoes loading 30-60 days forward, and would update the calculation of the Canada Dated Brent Strip to reflect a forward market value over the same time period.

The change would affect Platts assessments for cargoes loading offshore Labrador and Newfoundland, to capture the majority of Atlantic Canadian trades.

Outright price assessments that would be affected are: Terra Nova (AAJUH00), Hibernia (AAJKK00), and White Rose (AAVJX00). The differentials for Terra Nova (AAJUJ00), Hibernia (AAJKM00) and White Rose (AAVJY00) would be applied against the newly calculated 30-60 day Canada Dated Brent Strip.

These assessments appear in Platts Global Alert pages 230, 232, 296 and in Platts Crude Oil Market Wire, Oilgram Price Report, and North American Crude and Products Scan.

Platts proposes to implement these changes effective October 3, 2016.

Please send comments and feedback by August 26, 2016 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.