Oil LC Price Clauses

[liangtcl]

Dear Experts,

Due to the recent volatility of global oil price, more and more LC beneficiaries have requested to allow price clauses to be included in LC. Price clauses required are as follow in brief:

(1) If price is not known at the time of presentation, provisional value based on platt's spot quotation shall be used. Once final price is known, issuing bank to pay based on beneficiary's credit note for the outstanding difference, but if the final amount is lesser than what issuing bank has paid earlier (based on provisional value), applicant and beneficiary agreed to settle outside of LC. No discrepancy to be raised whether or not the quantity is over or under stated.

(2) LC amount will automatically fluctuate as per price variation even above or below the existing LC amount without any further amendment required.

Example of Description of Goods:
50,000 barrels of MOGAS 95 RON at USD 34.56 per barrel.

Q1. Wondering what is your opinion on the acceptability of the above price clauses?
Q2. Would you, as issuing bank, accommodate such request to include in your LC if both Applicant and Beneficiary have agreed to the price clauses?
Q3. Would removal of unit price in Description of Goods help if issuing bank refuse to accommodate such price clauses. Assuming if the concern is merely unit price on commercial invoice different from LC?

Any other related comment / feedback are welcome.

Thank you.