SUBSCRIBER NOTE: Platts clarifies Market on Close guidelines for WTI FOB US Gulf Coast

S&P Global Platts is clarifying the process and guidelines for participating in the Market on Close process for cargoes of crude oil loading FOB US Gulf Coast, including WTI.

In line with Platts existing methodology for its cargo assessments, Platts will publish bids, offers and interest to trade from approved participants in the USGC crude oil MOC assessment process in line with the following editorial standards and guidelines.

COUNTERPARTY REVIEW PROCESS: As part of its standard editorial practice, Platts reviews the companies participating in its price assessment processes. For more information on the counterparty review process, please visit https://www.spglobal.com/platts/en/our-methodologies/market-on-close. Entities that wish to participate in the MOC should contact pricegroup@spglobal.com.

WTI FOB USGC MOC: The WTI FOB USGC MOC process provides an assessment of value for a typical export crude cargo at 2:30 ET market close, considering published market information. The full explanation of Platts guidelines and principles for the Market on Close assessment process is available here: https://www.spglobal.com/platts/plattscontent/_assets/_files/en/our-methodolo gy/methodology-specifications/platts-assessments-methodology-guide.pdf. In addition to market information submitted by companies, Platts may also consider verifiable data reported and published through the day as provided for publication by individual sources.

SUBMITTING BIDS, OFFERS AND INTEREST TO TRADE: An approved MOC participant that wishes to have a firm bid or offer published or express interest to buy or sell a published indication should contact the Platts editor on ICE Chat at Platts_crude_shale or on email at americas_crude@spglobal.com. In order to be considered for publication, a market participant must provide the indication type (bid or offer), price (including pricing basis, if any), quantity and laycan. This information must be received in adherence with Platts Oil Timing and Increment Guidelines, available here: https://www.spglobal.com/platts/en/our-methodology/methodology-specifications /oil/oil-timing-and-increment-guidelines Platts may publish bids and offers for WTI FOB USGC at any time during the US day, but will only publish new bids and offers ahead of the daily cutoff at 1:45 ET. From this time until the 2:30 ET close, bids can be increased and offers can be decreased by a maximum increment of $0.10/b per 60 seconds. At 2:28 ET, Platts will no longer publish any price changes to bids or offers. Bids and offers that meet Platts publishing guidelines would be published on Platts Global Alert in the following format: Platts WTI FOB USGC: [Trading entity name] [bids for or offers] [volume] barrels for [laycan window] loading at [pricing basis] [pricing differential]. Additional TQC: [any terms, qualifications, or conditions]. For example, a bid might be published as:

Platts WTI FOB USGC: COMPANYA bids for 750,000 barrels for 11/1-11/10 loading at Platts Dated Brent -$3.25/b Buyers and sellers can revise the value of a published bid or offer subject to MOC incrementability guidelines, and can withdraw a bid or offer at any time by communicating with a Platts editor.

PRICING BASIS: Platts publishes assessments for WTI FOB USGC as an outright price, as a spread to the NYMEX WTI Strip, and as a spread to the Platts Dated Brent Strip. Platts may publish bids and offers on each of these bases or as a differential to any commonly used pricing mechanism including ICE Brent Futures.

DELIVERY LAYCAN: The WTI FOB USGC assessment reflects cargoes loading 15-45 days forward. Buyers and sellers must provide a 10-day loading window when submitting their bids and offers to Platts for publication.

VOLUME: The WTI FOB USGC assessment reflects a typical Aframax cargo of 600,000 barrels with +/-5% operational tolerance at seller's option. Platts recognizes that the US Gulf Coast serves as an export hub for cargoes reaching a number of destinations on varying vessels sizes. Platts will publish bids and offers for volumes from 600,000 barrels up to 2 million barrels and may normalize values for assessment purposes.

OIL QUALITY: Platts standards for WTI Midland cargoes globally reflect crude originating from one of four pipelines along the US Gulf Coast: BridgeTex, Cactus, Longhorn and Midland-ECHO. The origin pipelines referenced in the assessments may be expanded or modified over time to reflect market-accepted sources of Midland-quality crude shipped directly from the Permian Basin as Texas' crude oil infrastructure evolves. Cactus II and Midland-to-Echo II will be included January 2.

LOADING LOCATIONS: The WTI FOB USGC assessment reflects cargoes that meet the quality standard above, and as such are loaded in either Corpus Christi or Houston. For other pipeline provenance or loading locations, sellers should state in the Terms, Qualifications and Conditions of offers the pipeline and loading port. Such offers may be normalized to the standard cargo quality for assessment purposes. Platts will only publish open-origin bids, which allows for a seller to nominate any terminal serviced by the pipelines reflected in the assessment.

TRADE TERMS: Counterparties in a trade reported during the MOC process must perform basis their typical bilateral trading and credit terms that have been applied and accepted by both counterparties in the open market.

Please send all questions and comments to americas_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.