Platts increases maximum incrementability for USAC Buckeye Pipeline jet fuel MOC

Platts, part of S&P Global Commodity Insights, has increased the maximum incrementability for the Platts Market on Close assessment process for US Atlantic Coast Buckeye Pipeline jet fuel, with effect from Jan. 26, 2023, until further notice, as a result of extreme market volatility observed in recent sessions.

Platts has increased the incrementability for bids and offers published in the MOC using the eWindow communication tool in the Buckeye Pipeline jet fuel market to a maximum of 50 points/gal (0.50 cents/gal) every 15 seconds, up from the previous maximum of 25 points/gal (0.25 cent/gal) every 30 seconds.

All other MOC timing and increment guidelines remain unchanged. There are no changes being made to the timing and increment guidelines in other US refined products markets.

This decision follows several weeks of close observation of volatility in the Buckeye Pipeline jet fuel market. Since the start of 2023, traded values for USAC Buckeye Pipeline jet fuel differentials fluctuated by approximately 200 cents/gal, with volatility reminiscent of that seen in the second quarter of 2022. Platts announced a similar change in MOC incrementability at this time.

Price spikes seen for the differential in 2023 have coincided with near 10-month lows for stock levels in the area, as well as news of planned work at Phillips 66's 258,299 b/d Bayway refinery in Linden, New Jersey. Consistent allocation notices for Colonial Pipelines main distillate line, Line 2, have also complicated market fundamentals, with increased interest to ship distillates from the Gulf Coast to the Atlantic Coast.

Platts is closely monitoring the situation as it develops. Further announcements on resuming more standard incrementability for the MOC in this market will be made in due course. Please send comments to americas_products@spglobal.com and pricegroup@spglobal.com.

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