Platts proposes to launch dead prompt assessments for US Atlantic Coast refined products

Platts, part of S&P Global Commodity Insights, proposes to launch new assessments reflecting dead prompt barge loadings for US Atlantic Coast refined products markets, with effect from April 1, 2024.

The dead prompt barge assessments for RBOB, CBOB and their related supplemental assessments as well as ULSD would reflect loadings on an FOB New York Harbor basis one to three days forward from the date of publication.

Currently, all Platts USAC gasoline and distillate barge assessments reflect product loading three to seven days forward from the date of publication, on an FOB New York Harbor basis.

Dead prompt barge volumes would match the current barge assessments, which reflect a minimum volume of 25,000 barrels and a maximum volume of 100,000 barrels for RBOB, CBOB and ULSD.

The new dead prompt assessments would not replace existing USAC barge assessments but would instead be intended to provide supplementary price transparency into these markets, which in recent years have more often seen longer than usual periods of steep backwardation.

Platts understands that in such periods of steep backwardation, prompt barrels are worth much more than the typical barge loading time frame of three to seven days out, and trading activity in turn may switch to purchasing as close to loading as possible to avoid the high costs of holding inventory.

USAC Buckeye and Colonial pipeline assessments are not affected by this proposal.

Please send all comments or questions to americas_products@spglobal.com and pricegroup@spglobal.com by Feb. 23, 2024.

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.