SUBSCRIBER NOTE: US VGO, straight run basis to change to WTI futures

S&P Global Platts will change the pricing basis for its US Gulf Coast and US Atlantic Coast VGO and straight run fuel oil differential assessments to the prevailing WTI crude futures contract, from the current cash WTI basis, with effect from August 20, 2018.

The change is designed to reflect market convention and follows a note proposing the change that was published on July 20, 2018. The text of that note can be found at https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/072018-pl atts-proposes-to-review-us-vgo-straight-run-pricing-basis

Platts understands that most spot trade in these markets uses the prevailing WTI futures contract as the pricing basis.

As a result, from August 20, Platts will assess the differential and apply it to the relevant futures contract.

The differentials will be assessed versus the relevant WTI futures contract, and this will roll to the next month on the day the futures contract expires.

Platts will apply the front-month differential for the entire 5-15 day feedstocks laycan.

Platts may use market data priced off future months in the assessment, but it will be normalized to this basis.

There will no name change to the affected differential assessments as a result of this change.

The affected differential assessments are:

Assessment Name Code

VGO 0.5% USGC vs WTI AAJNY00 VGO 1.0% USGC vs WTI AAWLU00 VGO 2.0% USGC vs WTI AAWLV00

Straight run LS Dlvd USGC vs WTI Mo01 AALFS00 Straight run HS Dlvd USGC vs WTI Mo01 AALGC00

Straight run LS Dlvd USGC vs WTI Mo02 AALFT00 Straight run LS Dlvd USGC vs WTI Mo02 AALGE00

Straight run LS Dlvd USAC vs WTI Mo01 AALFU00 Straight run HS Dlvd USAC vs WTI Mo01 AALGG00

Straight run LS Dlvd USAC vs WTI Mo02 AALFV00 Straight run HS Dlvd USAC vs WTI Mo02 AALGI00

The assessments are published on Platts Global Alert page 764, in the Platts North American Crude and Products Scan and in the Platts price database.

Please send further questions and comments to americas_products@spglobal.com and 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.