Platts USG residual fuel assessments

As stated in previous subscriber notes, Platts US Gulf Coast residual fuel oil assessments will reflect barrels loading FOB Houston or FOB New Orleans beginning August 3.

This is the methodology as stated in the Platts Guide Methodology & Specifications Guide located at http://www.platts.com/IM.Platts.Content/MethodologyReferences/MethodologySpec s/usoilproductspecs.pdf on page 7.

If a buyer elects to bid for a specific terminal, that bid would be normalized by using the prevailing cross-harbor barge rates in the respective location.

As this is a FOB transaction, the standard is for the seller to name the loading terminal, while buyer will nominate the loading dates, pending terminal acceptance.

In addition, beginning August 3, Platts US Gulf Coast residual fuel oil assessments will reflect a minimum of 40,000 barrels up to maximum of 125,000 barrels, with a maximum operational tolerance of +/- 5%; in this instance, 40,000-45,000 barrels if a bid or offer exceeds this operational tolerance limit.

Please send comments/inquiry to Esa Ramasamy at esa_ramasamy@platts.com, Mike Easterbrook at Michael_easterbrook@platts.com and cc to pricegroup@platts.com.