SUBSCRIBER NOTE: Platts to clarify Chicago gasoline, jet fuel, diesel methodology

S&P Global Platts will clarify the methodology of its Chicago refined products assessments with effect from July 2, 2018, to bring clearer definition to the generic Chicago basis currently used in the assessments.

Once the change goes into effect, the Chicago assessments will reflect the lowest value between the Badger, West Shore and Wolverine pipelines. Platts will not be changing any of the current Chicago assessment names.

ASSESSMENT PROCESS: From July 2, Platts will only publish tradable bids and offers as well as related transactions that name a specific Chicago location.

Bids, offers or trades for locations other than Badger, West Shore and Wolverine may be included in the assessment process but will be normalized back to the same generic basis. This includes jet fuel at Des Plaines and East Chicago. Note that for CBOB gasoline trades for West Shore, Platts understands that delivery only goes to Milwaukee, Wisconsin.

BACKGROUND: The decision follows a formal review of Chicago assessment methodology announced in a subscriber note on February 8, 2018, to more fully reflect typical trade in the Chicago market.

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 are normalized back to the generic Chicago basis for assessment purposes.

REVIEW FEEDBACK: Feedback gathered during the review confirmed that the majority of observed Chicago market activity is based on a specific, rather than generic basis. In addition to the pipelines named in the existing Platts methodology, the Buckeye Complex storage hub is increasingly used as the basis for many gasoline and diesel trades.

NEW BUCKEYE COMPLEX ASSESSMENTS: Platts also will add new ULSD and CBOB and RBOB gasoline assessments to be based on the Buckeye Complex storage hub. This change is addressed in a separate subscriber note.

Platts will maintain all 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.

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