SUBSCRIBER NOTE: Platts to update price increment timings in Middle East crude MOC

(Correcting the hyperlink) S&P Global Platts will change the maximum allowed price increment during the Market on Close assessment process for Middle East crude partials and partials spreads to 5 cents/b every 5 seconds from the current 10 cents/b every 15 seconds, with effect from October 2, 2017.

Platts proposed this change in a subscriber note published on July 31, 2017: https://www.platts.com/subscriber-notes-details/27861512

The changes are aimed at bringing greater granularity to the MOC assessment process that is used to assess benchmark Dubai and Oman crude oil prices.

From October 2, the minimum price increment would change to 1 cent/b every 5 seconds from the current 1 cent/b every 15 seconds.

The faster increment timings will allow market participants to adapt more quickly to volatility in the global crude oil, products and derivatives markets that may have a bearing on prices of benchmark Middle Eastern crudes. Smaller price increments will also help demonstrate market value at a more granular level.

Activity in the Middle East sour crude MOC assessment process has grown substantially in recent years, reflecting rising trade volumes in the broader Asia market, underpinned by strong oil demand growth in countries such as China and India. Growth in market activity has necessitated a speedier approach in the MOC process. Platts last changed the price increment timings to 10 cents/b every 15 seconds, from 10 cents/b every 30 seconds in 2013.

Platts timing and increment guidelines are a key component of its MOC assessment methodology, essential to an orderly and transparent price discovery process. The Middle East sour crude MOC is facilitated by Platts Editorial Window or eWindow, an online data-entry and communications tool, which brings greater speed, transparency and efficiency to the price assessment processes.

The proposed change would apply to all crude partials and spreads in the Middle East MOC assessment process for Dubai, Oman, Upper Zakum, Al Shaheen and Murban crudes. The five grades are physically deliverable into the benchmark Dubai crude contract.

For more information on Platts Middle East crude benchmarks and how they are assessed, please visit: http://www.platts.com/price-assessments/oil/dubai-crude

Please send any feedback or questions to asia_crude@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.