Platts

What is Platts

Platts is a publisher of specialized information on energy and other commodity markets, and helps those markets function with greater transparency and efficiency. Platts observes market activity and assesses the value of commodities based on strict and publicly available methodologies. With a century of experience and more than 250 experienced market editors positioned in locations in North America, Europe, the Middle East and Asia, Platts has earned a reputation as the industry’s most reliable source of pricing benchmarks, market news and analytical information.

The prices published by Platts are respected by the market and referenced globally as benchmarks for contract settlement in both physical and financial markets, including crude oil, refined products, petrochemicals and related derivatives.

Ownership

As a publisher owned by The McGraw-Hill Companies, Platts conducts its editorial and market assessment activities with complete independence and impartiality. Platts has no financial interest in the price of the commodities on which it reports. Platts price-assessment systems have been developed over many decades, are fully open to public view and are overseen by a compliance group independent of the editorial staff.

Pricing

Platts daily spot price assessments are used in a variety of ways: (1) for the settlement of floating price deals; (2) under long-term contracts; (3) on a spot basis; (4) for the settlement of derivatives contracts such as swaps; and (5) by futures exchanges.

Platts assessments also are used to monitor trader performance, to quantify financially the value of oils transferred from upstream to the refinery

Importance

Platts recognizes the important role it plays in the marketplace and has continued to evolve and fine-tune its assessment methodologies to reflect changes in the marketplace. Over the years, Platts has made well publicized changes to its assessment methodologies for the key global benchmark crudes, including allowing alternative delivery of other crudes as production volumes of the core benchmarks have declined.