SUBSCRIBER NOTE: Platts proposes to revise Americas bunkers methodology

S&P Global Platts proposes to revise its Americas bunker fuel assessment methodology around minimum and maximum stem sizes and laycans considered in assessments with effect from January 2017. This follows a March 24 announcement of a review and period of time for feedback and analysis.

BACKGROUND: Platts periodically reviews the specifications of its assessments to ensure they are representative of market activity. Such reviews may lead to changes to the existing specifications of an assessment. During this review, Platts sought feedback on typical laycans that best represent the period of time during which most bunker buying and selling occurs, and also the typical size range for transactions of IFO 380, IFO 180 and MGO in all the ports assessed by Platts in the Americas.

PROPOSAL TO ADJUST SIZES: Platts proposes to revise the minimum and maximum assessed ranges for IFO 380 across the Americas, based on market feedback. At the same time, Platts will revise the minimum and maximum assessed ranges for IFO 180 and MGO to typical sizes. Typical sizes vary from port to port. Trades reported for volumes outside typical ranges may be considered atypical when assessing standard tradable volumes. These revised ranges and sizes are summarized in the following charts for ex-wharf and delivered assessments:

EX-WHARF ASSESSMENTS REGION IFO 380 IFO 180 MGO US Atlantic Coast 250-1000 300 150 US Gulf Coast 250-1000 300 150 US West Coast 500-1500 300 150 Panama 500-1500 300 150

DELIVERED ASSESSMENTS REGION IFO 380 IFO 180 MGO US Atlantic Coast 250-500 150 75 US Gulf Coast 250-500 150 75 US West Coast 250-750 150 75 South America 250-1500 150 75

0.1%S BUNKER FUEL: Platts will continue to assess 0.1% sulfur bunker fuel in Houston and New York on an ex-wharf basis. The assessments are derived from a calculation based on the prices of their two typical components, low-sulfur straight run fuel oil and ultra-low sulfur heating oil, with no associated stem size.

PROPOSAL TO ADJUST LAYCANS: Based on market feedback, Platts proposes to revise the laycan for its marine fuel assessments in Balboa and Cristobal, Panama, and the Panama Canal. The proposed laycan in these three locations is three to 10 days forward. The current assessed laycan is three to seven days forward.

Feedback suggested laycans in other ports reflect market norms. Platts currently assesses US Atlantic Coast, US Gulf Coast, Central and South American ports three to seven days out. US West Coast ports are assessed three to 10 days out.

Market indications outside of the minimum and maximum assessed range, and before or beyond the assessed laycans, may be normalized for inclusion the assessment process.

PROPOSAL TO UPDATE DELIVERED BUNKERS, BARGE RATES ASSESSMENTS METHODOLOGY: As part of the broader Americas bunker fuel methodology review, Platts proposes to update its North American delivered bunker fuel and barge rates methodology. This will ensure these assessments are published in line with those of other oil products globally, particularly ex-wharf bunker fuel.

North American delivered bunker fuel prices will be composed of the ex-wharf price and the port-specific, typical barge rate applied to the midpoint of the assessed minimum-maximum range in that port. Platts will publish the delivered assessment with a 10 cents/mt low-high range, as ex-wharf bunker fuel assessments are currently published. Market indications will also be considered in these assessments.

Barge rates will be published in the same manner. The barge rates will reflect the cost/mt to move the midpoint of the assessed range of IFO 380 and the assessed stem size of MGO. For example, the Houston barge rate would reflect the cost/mt to deliver 375 mt of IFO 380 and 75 mt of MGO.

The barge rates are determined by a regular survey of the market. The rates are one figure that are a rough average of the prevailing barge rates in a market. It is not an assessment for a specific-sized barge, but instead is the result of a compilation of several prevailing prices.

North America delivered bunker fuel assessments appear in Platts Bunkerwire, Platts Bunkerworld, on Platts Global Alert page 860 and in the Platts database. North America bunker barging rates also appear in Bunkerwire, on PGA page 866 and in the Platts database under the following codes:

PORT CODE New York AARUA00 Philadelphia AARUB00 Montreal AARUC00 Charleston AARUD00 Norfolk AARUE00 Houston AARUF00 New Orleans AARUG00 Los Angeles AARUH00 San Francisco AARUI00 Seattle AARUJ00 Vancouver AARUL00

Please send comments and feedback by December 19, 2016, to americas_bunkers@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.