SUBSCRIBER NOTE: Platts clarifies West African crude cargo MOC methodology

Following a recent increase in activity in the S&P Global Platts Market on Close assessment process for West African crude oil cargoes, Platts wishes to clarify several aspects of its WAF crude oil price assessment methodology.

MOC timings: As detailed in the Platts Increments And Timings guide, Platts reflects the following standards in the WAF crude oil MOC: Bids and offers must be received in full by Platts before 15:45:00 London time. Platts will publish changes to bids and offers meeting its publishing criteria received up to but not including 16:25:00 London time. All indications not traded or removed before 16:30:00 London time will cease to be valid at this time.

MOC increments: As detailed in the Platts increments and timings guide, Platts reflects the following standards in the WAF crude oil MOC: Bids and offers may not be improved more frequently than once a minute. No single price improvement may exceed $0.05/b. Provided that interest has not been already reported to Platts by a counterparty, companies may withdraw their indications freely at any time. Once interest has been marked by a counterparty, the company bidding or offering has 60 seconds to notify Platts of its intention to repeat its bid or offer.

Bids and Offers: Platts publishes bids for West African crude oil cargoes which contain a minimum of a five-day date range. In line with Platts guidance on slippage days, at least one day within this range should match the current loading dates of a physical cargo of the corresponding crude oil grade, as contained in Platts latest cargo program tracking. Platts also publishes offers for West African crude oil cargoes which contain a minimum of a two-day date range. Offers containing longer date ranges should be narrowed by the buyer at the time of trade, while bids containing longer date ranges should be narrowed by the seller at the time of trade.

Slippage days: Platts has observed that, in line with current practice in the related Mediterranean crude oil market, slippage days are also part of current WAF market convention. Platts reflects bids, offers and trades that can be supplied with cargoes where at least one day of the loading laycan fits fully into the period being bid or offered. Should a seller opt to sell any cargo not loading fully within the period being bid or offered, they must cover any additional costs incurred by the buyer resulting from the earlier or later loading. These earlier or later loading days are known as "slippage days".

Program availability: Platts understands that the Nigerian crude oil loading programs are released on a regular monthly schedule. Platts will publish bids for any Nigerian cargoes whose laycans fall fully or partly within the date range of 25-55 days ahead of publication, provided that the loading schedule for the dates being bid has been received by Platts prior to the cut-off for new bids and offers. Platts will publish offers for any Nigerian cargoes whose laycans fall fully within the date range of 25-55 days ahead of publication.

Secondary market: Platts will publish bids for cargoes which have been sold, understanding that these cargoes may be made available again by the current owner at a particular price level. However, Platts reserves the right to normalize bids and offers where appropriate.

Platts continues to monitor standard practice in the WAF crude market and is actively seeking feedback on all aspects of current WAF crude methodology.

Please send all comments or questions to europe_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.