SUBSCRIBER NOTE: Platts updates volume reflected in LA jet fuel

Following a period of industry feedback ending March 6, Platts has updated its Los Angeles jet fuel pipeline methodology and specifications to align with standard market convention of trading in minimum 25,000-barrel volumes.

Platts had reflected a minimum shipment size of 10,000 barrels and a maximum shipment size of 25,000 barrels.

Through this revised methodology, Platts assessments reflects standard shipment sizes of 25,000 barrels only.

Platts will continue to consider other traded lot sizes reported in the market, but such trades may be normalized to reflect a 25,000-barrel parcel.

The proposed change reflects close engagement with the market and a review of market trading practices.

Platts has implemented these changes effective March 20, 2015.

The amendment to a 25,000-barrel volume basis reflects the value of fuel for delivery on the Kinder Morgan Pipeline System, with an option to deliver at Los Angeles International Airport.