SUBSCRIBER NOTE: Platts proposes to revise USAC gasoline, distillate barge methodology Oct 2

S&P Global Platts proposes to revise its methodology for US Atlantic Coast gasoline and distillate barge assessments in New York Harbor, particularly around volumes and laycans as well as how we publish data on these markets during the Market on Close assessment process, effective October 2, 2017.

This proposal follows a February 6, 2017, announcement of a review of these barge assessments. A full list of the assessments involved is at the bottom of this subscriber note.

REVISED LAYCANS FOR ALL NYH BARGES: Based on market feedback and an analysis of trade data, Platts proposes to revise the laycan for its gasoline and distillate barges in New York Harbor to three to seven days forward on each trading day with effect from October 2. Currently, the laycan on all FOB NYH gasoline and distillate barge assessments is three to seven days forward for trade Monday-Wednesday and five to nine days forward for trade Thursday-Friday.

ADJUSTED VOLUME FOR LSHO: Platts also proposes to revise the assessed volume range for the FOB NYH low sulfur heating oil barge assessment to 25,000-75,000 barrels effective October 2, from the current 25,000-100,000 barrel range, bringing it in line with all other FOB NYH gasoline and distillate assessments. There will be no changes to the assessed volume range for all other FOB NYH gasoline and distillate assessments, which currently stands at 25,000-75,000 barrels. Feedback has suggested that this volume range is representative of market norms.

Market indications outside of the minimum and maximum assessed volume range, and before or beyond the assessed laycans, may be normalized for inclusion the assessment process.

REVISED EWINDOW FORMAT FOR PUBLISHING DATA DURING MOC: In addition, Platts proposes to revise the format for publishing bids and offers for all FOB NYH USAC gasoline and distillates barge assessments through the Platts eWindow communication tool during the MOC process. Currently, bids and offers published through eWindow are in clip sizes of 25,000 barrels. Platts proposes that with effect from October 2, 2017, bids and offers published via eWindow will span one of two volume ranges: 25,000-50,000 barrels and 51,000-75,000 barrels. In the event of a trade in this eWindow environment, buyers will have 30 seconds to nominate a specific size of the stem within the range, to the nearest 1,000 barrels. If the buyer does not nominate a volume within 30 seconds, the quantity will default to the lowest volume in the range. The market-maker will have 45 seconds from the time of the trade to choose whether or not to repeat their bid/offer. Platts will also continue to publish bids, offers and trades manually for these markets.

RATIONALE FOR CHANGE: This proposed change reflects feedback from market participants highlighting the varying barge sizes in the USAC gasoline and distillate markets, with trades typically not coming in 25,000 barrel clip sizes. In addition, market feedback has suggested that buyers typically retain volume optionality in the FOB NYH gasoline and distillate barge market.

USAC gasoline and distillate barge assessments appear in US Marketscan and Oilgram Price Report, on Platts Global Alert pages 152, 302, 310, 311, 312, 313, 402, 410, 411, 480, 481 and 482, as well as in the Platts price database under the codes listed below.

BACKGROUND: Platts periodically reviews the specifications and methodology of its assessments to ensure they are representative of market activity. Such reviews may lead to changes in existing assessments. During this review, Platts sought feedback on typical volumes and laycans for USAC gasoline and distillate barges trading on an FOB New York Harbor basis as well as the format for publishing bids and offers on these markets in the MOC process through the Platts eWindow communication tool.

The assessments affected by these proposed changes are:

GASOLINE Gasoline CBOB NY Barge AAWBL00 Gasoline CBOB NY Barge supplemental AAXFS00 Gasoline Prem CBOB NY Barge AAWLC00 Gasoline Prem CBOB NY Barge supplemental AAXFT00 Gasoline Prem RBOB NY Barge AAMGY00 Gasoline Prem RBOB NY Barge supplemental AANWJ00 Gasoline RBOB NY Barge AAMGV00 Gasoline RBOB NY Barge supplemental AANWI00 Gasoline Unl 87 NY Barge AAMIT00 Gasoline Unl 87 NY Barge supplemental AAOYI00 Gasoline Unl 89 NY Barge AAMHJ00 Gasoline Unl 89 NY Barge supplemental AAOYJ00 Gasoline Unl 93 NY Barge AAMHM00 Gasoline Unl 93 NY Barge supplemental AAOYK00 Intraday Gasoline RBOB NYH barge AAWZW00 Intraday Gasoline RBOB NYH barge vs NYMEX RBOB AAWZW01

JET FUEL Jet Kero LS New York Harbor barge PJABJ00 Jet Kero New York Harbor barge PJAAW00 Jet Kero ULS New York Harbor Barge AAVTI00

HEATING OIL Gasoil No. 2 New York Harbor barge POAEG00 LS Heating Oil barge FOB NYH AAXPY00 ULS Heating Oil barge FOB NYH AAXPX00 Intraday Heating Oil NYH barge vs NYMEX Heating Oil AAWZY01 Intraday Heating Oil NYH barge AAWZY00

DIESEL ULSD New York Harbor barge AATGX00 Intraday ULSD NYH barge AAWUU00 Intraday ULSD NYH barge vs NYMEX Heating Oil AAWUU01

Please send any feedback by July 30, 2017 to americas_products@spglobal.com and pricegroup@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.