SUBSCRIBER NOTE: Platts proposes to roll Brent/WTI Futures spreads on Brent expiry

In line with the move by the ICE exchange to amend the expiry of the ICE Brent Futures contract, Platts is proposing to amend the date on which the Platts assessment of Brent/WTI Futures spreads rolls from one monthly contract to the next. Platts assesses values daily at 16:30 London time for the monthly contracts for ICE Brent Futures, NYMEX WTI Futures, as well as the spread between the two contracts, which is known as the Brent/WTI Futures spread. As the ICE Brent Futures and NYMEX WTI contracts expire on different dates, the spread between them is currently assessed until the expiry of NYMEX WTI, which currently occurs later than the expiry of ICE Brent Futures. After the expiry of the front-month NYMEX WTI contract, the Brent/WTI Futures spread published by Platts also expires, or rolls, to the next month's contract. In line with the previously announced transition by ICE to month-ahead expiry for ICE Brent Futures, for the March 2016 contract onwards ICE Brent Futures will expire earlier than at present. This will mean that the front-month NYMEX WTI contract will have no comparable front-month ICE Brent Futures contract during most assessments. As such, a front-month Brent/WTI Futures spread which rolls following WTI expiry would result in no front-month values being available for most of the month. Platts therefore proposes to roll its assessments of Brent/WTI Futures spreads on ICE expiry, rather than on WTI expiry. This will mean that the assessments will roll earlier than at present, and that front-month values for Brent/WTI Futures spreads will be published on all relevant publication days. This proposed change will have no impact on Platts assessments of ICE Brent Futures or NYMEX WTI, which will continue to be assessed as per their contract expiry dates. Please send any comments and queries to europe_crude@platts.com and pricegroup@platts.com by December 16. 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.