Subscriber note: Platts extends review of Middle East crude cargo size

Platts is extending the comment period for its proposal to amend the full cargo size reflected in its Dubai, Oman and Upper Zakum crude oil spot price assessment process to 500,000 barrels. This proposal was first announced on August 14, 2012, and reflects the evolution in volume standards for Middle East crude oil loadings where current deliveries of a cargo size of 500,000 barrels typically occur with a minor operational tolerance of 1,000 barrels. Platts requests further comments on the proposal by December 14, 2012, to asia_crude@platts.com and pricegroup@platts.com. Platts will delay implementation, and announce a possible new implementation date after the comment period is complete. Currently, the cargo size of Dubai, Oman or Upper Zakum used in Platts assessment process is typically 475,000 barrels. Partial cargoes, trading in lots of 25,000 barrels each, currently converge into a full physical cargo when a 19th partial is traded between a single buyer and a single seller. This results in a 475,000-barrel cargo -- equivalent to a full 500,000-barrel cargo with an implied operational tolerance of minus 5%. Under the proposed revision, Platts is considering adapting this mechanism for convergence upon trading of 20 partials, resulting in a 500,000-barrel cargo. In each case, operational tolerance is defined under Platts methodology as 1,000 barrels.