Platts proposes to launch USGC light cycle oil assessment

Platts, part of S&P Global Commodity Insights, is proposing to launch an assessment for light cycle oil on the US Gulf Coast with effect from Oct. 1, 2024.

The proposed assessment would reflect product moving by barge between refineries on the USGC. Platts understands LCO on the USGC typically trades as a differential to USGC prompt pipeline ULSD, minus the Renewable Volume Obligation. Platts is proposing to reflect bids, offers and trades for LCO barges on an FOB Houston basis for delivery 7-14 days forward, published as an outright value.

The assessment would reflect LCO barges of 45,000 barrels with a maximum sulfur content of 2,000 ppm, an API gravity between 18 degrees and 25 degrees, and aromatics content less than 1%.

Proposed Platts FOB Houston LCO specifications:

Pricing information for material with other specifications and terms may be considered for the assessments, normalized to the proposed standard.

Platts seeks feedback on the proposed specifications, as well as other terms of trade and relevant pricing parameters for the USGC LCO market.

Please send all comments or questions by Sept. 3, to americas_products@spglobal.com and pricegroup@spglobal.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.