Platts proposes new assessments for USGC distillate waterborne markets

Platts proposes new assessments for USGC distillate waterborne markets

S&P Global Platts is proposing the launch of 14 new assessments to better reflect trading activity and provide more transparency for diesel, gasoil and jet fuel waterborne markets on the US Gulf Coast, effective September 1

Five assessments would reflect activity for the most common distillate products exported from the USGC and delivered across Latin America: jet fuel A, jet fuel A-1, EN590 diesel, Brazilian S10 diesel, and Mexican specification ULSD.

The growing importance of US supply, especially to Latin America, has made these prices increasingly important to export markets, particularly for buyers who import these barrels.

These assessments would reflect the price for loading and quality on a FOB basis in Houston, 7-21 days forward from the day of publication. They would be published as differentials to the forward value of Platts USGC pipeline assessments for jet and ULSD, as represented by forward strips covering each of the delivery dates for these products.

The value of these forward strips, assessed using Platts USGC swaps assessments, would also be published for diesel and jet fuel on three different laycans, for a total of six new assessments.

These differentials are a core part of numerous assessments Platts already publishes for the USGC and Caribbean, and for fuel delivered to Latin America. The corresponding relationships for these proposed differentials to current assessments are as follows:

Additionally, Platts would publish three assessments for the domestic USGC barge spread for diesel, jet fuel and No. 2 gasoil against the respective prompt Colonial Pipeline assessment. These spreads would represent barges already assessed by Platts for 50,000-125,000 barrels loading 10-18 days from the day of publication.

The list of assessments Platts is proposing to publish is as follows:

USGC waterborne jet spread

USGC waterborne No. 2 gasoil spread

USGC waterborne ULSD spread

Jet A-1 differential

Jet A differential

Mexico ULSD differential

Brazil ULSD differential

EN590 ULSD differential

ULSD 7-21 day strip

ULSD 15-30 day strip

ULSD 21-35 day strip

Jet fuel 7-21 day strip

Jet fuel 15-30 day strip

Jet fuel 21-35 day strip

Please send all comments or questions to americas_products@spglobal.com and pricegroup@spglobal.com by July 24, 2020.

For written comments, 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 to the public upon request