SUBSCRIBER NOTE: Platts to launch 10-day rolling freight average for Dirty Cross-UK Continent 80,000-mt assessment

S&P Global Platts will begin publishing a 10-day rolling average of its existing Dirty Cross-UK Continent 80,000-mt assessment from September 2, 2019.

As previously announced, this assessment will be reflected in its Dated Brent crude oil benchmark through the freight adjustment factor to adjust CIF Rotterdam offers, for which the corresponding note can be found here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/022519-pl atts-to-reflect-cif-rotterdam-offers-in-dated-brent-from-november-2019-loadin gs

Platts will publish a 10-day rolling freight average on the morning of each day's Market on Close assessment process to ensure the freight factor is fully known before the North Sea crude oil assessment process begins. This will be based on its 10 previous assessments of the Dirty Cross-UK/Continent 80,000-mt freight assessment. This rolling average will be used to calculate the freight adjustment factor, applied to CIF cargo information shown in the MOC process for assessment purposes. The derived FOB values will be used in determining value versus an FOB bid in the assessment process for each of the five grades in the Dated Brent basket. Platts will phase in the level of freight adjustment over the course of three months until it reaches 80%. From October 1, a factor of 40% will be applied to November-loading CIF equivalent cargoes in the Dated Brent assessment, rising to 60% for December-loading cargoes, and 80% for January-loading cargoes onwards. These percentages will be applied to the cargo's freight rate from its respective terminal to Rotterdam and associated port fees. From September 2, Platts will publish the rolling average of the Cross-UKC Worldscale percentage assessment, as well as individual 10-day rolling averages of the five $/mt freight adjustment factors (including phased percentages): Sullom Voe-Rotterdam, Hound Point-Rotterdam, Sture-Rotterdam, Teesside-Rotterdam and Mongstad-Rotterdam. All factors will be databased against the date for which they will be applicable. The Dirty Cross-UK/Continent 80,000 mt freight assessment is published in Platts services under code PFAKD10. Platts invites comments and questions by August 30, 2019 to shipping@spglobal.com with a copy to pricegroup@spglobal.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.