Platts launches dead prompt assessments for USAC refined products from April 1

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

The new dead prompt barge assessments for RBOB and CBOB gasoline, their premium counterparts and related supplemental assessments, as well as ULSD reflect loadings on an FOB New York Harbor basis one to three days forward from the date of publication. These will be published in US cents per gallon on an outright basis as well as differentials against their related NYMEX futures.

Details of the new assessments are as follows:

All other existing PlattsUSAC 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 match those of the existing barge assessments, which reflect a minimum volume of 25,000 barrels and a maximum volume of 100,000 barrels for RBOB, CBOB and ULSD, and a minimum of 25,000 barrels and maximum of 75,000 barrels for premium CBOB and premium RBOB.

The new dead prompt assessments do not replace existing USAC barge assessments but instead are intended to provide supplementary price transparency to 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.

The decision to launch the new assessments was first announced by Platts in a subscriber note published Feb. 28, 2024, available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/022824-platts-to-launch-dead-prompt-assessments-for-usac-refined-products-april-1

The new assessments appear in Platts US Marketscan, Oilgram Price Report, Platts Global Alert and Platts Refined Products Alert pages 152, 154, 310, 311, 312, 313, 330, 410, 411, 481.

USAC Buckeye and Colonial Pipeline assessments are not affected by the new assessments.

Please send any comments or questions to americas_products@spglobal.com and pricegroup@spglobal.com.

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