SUBSCRIBER NOTE: Platts adds Chicago Buckeye Complex gasoline, ULSD assessments

Houston (Platts)--2Jul2018/1204 pm EDT/1604 GMT S&P Global Platts has launched new assessments for CBOB and RBOB gasoline and ULSD based on the Buckeye Complex storage hub in the Chicago area with effect from July 2, 2018.

BACKGROUND: The launch of the new assessments follows a formal review of Chicago assessment methodology announced in a subscriber note on February 8, 2018, which showed widespread interest in price assessments based on market activity at the Buckeye Complex, also known as BCX.

Platts' former Chicago assessment methodology was based on a generic Chicago basis, as opposed to on any specific pipeline. Bids, offers or trades for product delivered into Chicago for a specific pipeline were 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.

Based on industry feedback, Platts decided to add assessments for Gasoline CBOB Chicago Buckeye Complex, Gasoline RBOB Chicago Buckeye Complex and ULSD Chicago Buckeye Complex. Bids, offers and trades for other pipelines or terminals may be normalized back to the Buckeye Complex basis for assessment purposes.

UPDATE TO EXISTING METHODOLOGY: Platts has also decided to clarify the methodology of its existing Chicago gasoline, diesel and jet fuel assessments so that they reflect the lowest value of the Badger, West Shore and Wolverine pipelines. This change was addressed in a separate subscriber note. Platts has not changed any of the current Chicago assessment names.

Platts has maintained all other aspects of Chicago methodology and applied them to the new Buckeye Complex assessments, including timing, 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.

The new assessments and their symbols are as follows:

Gasoline CBOB Chicago Buckeye Complex ACBAA00 Gasoline CBOB Chicago Buckeye Complex Differential to NYMEX RBOB ACBAB00 Gasoline RBOB Chicago Buckeye Complex ACBAC00 Gasoline RBOB Chicago Buckeye Complex Differential to NYMEX RBOB ACBAD00 ULSD Chicago Buckeye Complex ACBAE00 ULSD Chicago Buckeye Complex Differential to NYMEX ULSD ACBAF00

The assessments can be found on Platts Global Alert pages 160, 420, 320, 481, 321 and 421, and in Oilgram Price Report and US Marketscan.

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.