Platts to adopt 25 days basis for Brent on January 6, 2012

Following extensive feedback to its July 15 notice, Platts will amend the date range reflected in the Dated Brent assessment to 10-25 days forward, instead of the current 10-21 days forward. The change will take effect on January 6, 2012. At the same time, Platts will only consider in its assessment of cash Brent those crudes where the cargoes are nominated 25 days in advance of loading, instead of the current 21 days.

In line with these changes, Platts will continue to publish its front-month cash Brent assessment through the end of each full calendar month, in line with current practice. However, the differential between the front and second month cash Brent assessments would be established in line with a 25-day nomination period.

For example, the relative value between February and March cash Brent will be established on January 6, 2012. Thereafter, February would be assessed using the prevailing March cash value, plus the spread established on January 6, until the last publishing day of the month.

During the comment period, Platts received substantial support for the move to a 10-25 days assessment period. Platts also received strong encouragement for synchronization of these changes with other potential changes that could be made in the futures and derivatives markets.

Platts clearly sees the value of alignment to market changes, and continues to call for adaptations to be made to all related instruments, including futures, to keep step with the evolution of the marketplace as a whole.

Platts recognizes the value of long-term planning for major price benchmarks. In consultations with the marketplace, strong support has also emerged for a further move towards a 30-day nomination process for the physical Brent complex. Accordingly, Platts will engage closely with all parties to work towards a possible implementation of such a change to the nomination process in 2015 or 2016.

Separately, Platts has received further strong support for the potential use of escalators for the lighter crude grades currently reflected in the Brent assessment, and for including additional grades. Platts plans to begin discussions regarding these potential enhancements. The crude oils currently forming Platts' Brent assessments are Brent, Forties, Ekofisk and Oseberg.

For more information and background on the changes to be made, Platts has posted a webinar on the proposed changes to its Dated Brent and cash Brent assessments. The webinar is available for download at the following link: http://www.platts.com/Webinars

Please send further comments and questions to: jorge_montepeque@platts.com, dave_ernsberger@platts.com, joel_hanley@platts.com, with a copy to pricegroup@platts.com and Europe_crude@platts.com.