SUBSCRIBER NOTE: Platts to review USAC gasoline, distillate barge methodology

S&P Global Platts is reviewing its methodology for US Atlantic Coast gasoline and distillate barges in New York Harbor and invites feedback.

The goal of the review is to determine if existing methodology and the format for publishing bids and offers for USAC barges in the Platts Market on Close assessment process through the Platts eWindow communication tool can more fully reflect the way gasoline and distillate barges trade on the USAC, particularly in terms of volume and laycans.

Platts periodically reviews methodology and specifications of its assessments to ensure they are representative of market activity. Such reviews may lead to changes of existing assessments, although any proposed changes would be subject to further industry consultation ahead of any final decision.

Current methodology for volumes reflected in FOB New York Harbor assessments for gasoline and distillates is between 25,000 barrels and 75,000 barrels, with the exception of the low sulfur heating oil barge FOB NYH, which reflects volumes between 25,000 barrels and 100,000 barrels.

The laycans on all FOB NYH gasoline and distillate assessments are currently 3-7 days forward for trade Monday-Wednesday and 5-9 days forward for Thursday-Friday. This is in line with timings reflected in the USAC Buckeye Pipeline assessments for gasoline and distillates Platts published.

Current methodology also states that USAC barge assessments for gasoline and distillates reflect market activity where the seller nominates a loading terminal three days ahead of the first day of a three-day laycan, including at least two full business days. Additionally, the buyer must nominate to the seller a barge and loading date two days prior to intended day of loading within the stipulated three-day laycan. This period should include at least one full business day. The nomination should be submitted prior to 10:30 am ET. The seller should give notice of clearance, pending terminal acceptance of the barge nomination within six hours of receipt of buyer's nomination.

Platts invites comments on all of the above points, including specifically whether or not the relevant eWindow instruments should be amended to align better with market conditions.

Please send any feedback by March 31, 2017 to americas_products@spglobal.com and pricegroup@spglobal.com.

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.