SUBSCRIBER NOTE: Platts to discontinue USAC low sulfur heating oil Sept 1

Platts to discontinue USAC low sulfur heating oil assessments on Sept 1

S&P Global Platts will discontinue its US Atlantic Coast barge assessments for low sulfur heating oil, effective September 1, 2020. Platts will not discontinue the USAC No. 2 gasoil barge assessment, based on market feedback.

This decision follows a February 20 proposal to discontinue both assessments, which can be found here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/022020-platts-proposes-discontinuing-usac-high-low-sulfur-heating-oil

Spot liquidity has decreased significantly for high sulfur distillate in recent years, particularly since July 1, 2018, when New England moved to a maximum 15 ppm sulfur for home use. The region is the largest heating oil consumer in the US, as most other areas of the country use natural gas, electricity or propane for home heating. Pennsylvania is the last USAC market to use LSHO, but a new regulation passed late in 2019 will move the state to ULSHO on September 1, 2020.

The affected assessments are as follows:

ASSESSMENT CODE

LS Heating Oil barge FOB NYH AAXPY00

LS Heating Oil barge FOB NYH vs NYMEX ULSD ADIAP00

Conversely, reported spot liquidity for 77 grade heating oil, which is reflected in Platts USAC No. 2 gasoil barge assessment, has increased in recent months. This has partly reflected greater demand from the marine fuel sector as low sulfur fuel oil use has grown.

These prices appeared on Platts Global Alert page 430, 482, in Platts US Marketscan and Platts Oilgram Price Report, and in the Platts price database.

Please send any feedback to americas_products@spglobal.com and pricegroup@spglobal.com

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