SUBSCRIBER NOTE: Platts proposes new USAC 500 ppm LS heating oil assessment

Platts is proposing to launch a new assessment for low sulfur heating oil barges in New York Harbor with a maximum sulfur content of 500 ppm with effect from October 3, 2016.

The proposed assessment reflects growing trade in low sulfur heating oil now that all states in the US Northeast have stopped using the higher-sulfur 2,000 ppm grade heating oil.

The new assessment would be published as an outright price in cents/gal, and would reflect barges loading on an FOB basis 3-7 days forward from Monday through Wednesday, and 5-9 days forward on Thursday and Friday. This matches the existing delivery period of the Platts New York Harbor barge assessments of Gasoil No. 2 (2,000 ppm heating oil), ultra low sulfur heating oil (maximum 15 ppm sulfur) and ULSD.

The new assessment would reflect the value of barge clip sizes of a minimum 25,000 barrels, and maximum 100,000 barrels.

Other specifications for the 500 ppm low sulfur heating oil assessment would be similar to Colonial Pipeline's 75 grade for LSHO at the delivery point of Linden, New Jersey.

Please send comments or feedback on this proposal by August 15, 2016 to americas_products@platts.com and pricegroup@platts.com.

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 upon request.