SUBSCRIBER NOTE: S&P Global Platts to review Chicago refined products methodology

S&P Global Platts is reviewing its Chicago refined products assessment methodology, particularly around the location basis and cycle timing for gasoline, diesel and jet fuel, and invites feedback from interested parties.

The goal of the review is to determine if existing methodology for assessing Chicago products can more fully reflect typical trade in the Chicago market, particularly with regard to the specific pipeline or storage hub basis of many trades.

S&P Global 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.

S&P Global Platts' current Chicago assessment methodology is based on a generic Chicago basis, as opposed to any specific pipeline. Under current methodology, bids, offers or trades for product delivered into Chicago for a specific pipeline such as Wolverine, West Shore or Badger, are normalized back to the generic Chicago basis for assessment purposes.

The majority of observed Chicago market activity, however, is based on a specific, rather than generic basis. In addition to the pipelines named in the existing S&P Global Platts methodology, the Buckeye Complex storage hub is increasingly used as the basis for many gasoline and diesel trades. S&P Global Platts seeks input on how best to reflect the range of delivery methods in its assessments, including refocusing the gasoline and diesel assessments to a Buckeye Complex basis.

S&P Global Platts also invite comments on other aspects of Chicago methodology, including timing, now tied to three Explorer Pipeline cycles rolling to a new month on the 25th of each month, then rolling on the 5th and 15th for the second and third cycles. Note that there are no plans to change the assessment names.

Please send any feedback by March 2, 2018, to americas_products@spglobal.com and pricegroup@spglobal.com.

Please provide a clear indication if comments are not intended for publication by S&P Global Platts for public viewing. S&P Global Platts will consider all comments received and will make comments not marked as confidential available upon request.