SUBSCRIBER NOTE: Platts clarifies European freight-based oil assessments

Platts understands that Worldscale has announced fixed differentials based on the use of 0.1% sulfur fuels in the Baltic and North Sea ECA zones of $48.35/mile of the voyage steamed within the zones for 2015. Platts clarifies that for its ULSD 10 ppm FOB NWE Cargo, ULSD 10 ppm FOB NWE Le Havre Cargo, Gasoil 0.1% FOB NWE Cargo, HSFO 3.5% FOB NWE Cargo, Platts will continue to calculate these freight-derived assessments by using the $/mt Worldscale flat rates, and will not apply these fixed differentials in 2015. This is congruent with existing methodology, where Platts only uses the $/mt Worldscale flat rates for these netback calculations and does not use Worldscale fixed rate differentials for 1% sulfur fuel in the ECA zones. Platts Urals ex-Baltic Sea (FOB) and Urals ex-Primorsk (FOB) will also only take into account the $/mt Worldscale rates in 2015, as has previously been the case. Please send any comments or questions by December 1, 2014, to europe_products@platts.com and pricegroup@platts.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.