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

S&P Global Platts is revising its methodology for US Atlantic Coast gasoline and distillate barge assessments in New York Harbor in respect of laycans, volumes and how data is published on these markets during the Platts Market on Close assessment process, effective October 2, 2017.

This follows an initial February 6, 2017, announcement of a review of these barge assessments and a more detailed proposal on June 16, 2017.

REVISED LAYCANS FOR ALL NYH BARGE ASSESSMENTS: Based on market feedback and an analysis of trade data, Platts will revise the laycan for all of 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.

CHANGES TO VOLUME RANGES: Platts will also change the minimum-maximum assessed volume ranges for some gasoline and distillate barges to better reflect current spot market activity. From October 2 onward, the minimum-maximum volume range for the following assessments, and associated supplementals and intradays, will be 25,000-100,000 barrels, from the current 25,000-75,000 barrels.

GASOLINE Code Gasoline CBOB NY Barge AAWBL00 Gasoline RBOB NY Barge AAMGV00

JET FUEL Code Jet Kero New York Harbor barge PJAAW00

HEATING OIL Code Gasoil No. 2 New York Harbor barge POAEG00 ULS Heating Oil barge FOB NYH AAXPX00

DIESEL Code ULSD New York Harbor barge AATGX00

The current assessed volume range of 25,000-100,000 barrels for FOB NYH low sulfur heating oil barges will remain unchanged. In addition, the current assessed volume range of 25,000-75,000 barrels for all other FOB NYH barge assessments -- conventional and mid-grade gasoline, premium gasoline grades, low sulfur jet kero and ultra low sulfur jet kero -- will not be affected by this change.

REVISED EWINDOW FORMAT FOR PUBLISHING DATA DURING MOC: In addition, Platts will revise the format for publishing bids and offers for all FOB NYH gasoline and distillates barge assessments through the Platts eWindow communication tool during the MOC process. Currently, bids and offers published through eWindow for these markets are in clip sizes of 25,000 barrels.

With effect from October 2, bids and offers for all assessments with a volume range of 25,000-100,000 barrels published via eWindow will be in one of three volume ranges: 25,000-50,000 barrels, 51,000-75,000 barrels and 76,000-100,000 barrels. Bids and offers for all assessments with a volume range of 25,000-75,000 barrels published via eWindow will have one of two volume ranges: 25,000-50,000 barrels and 51,000-75,000 barrels.

In the event of a trade in the 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 to repeat its bid/offer. Platts will also continue to publish bids, offers and trades manually for these markets.

MOC PRICE ASSESSMENT PRINCIPLES: For CBOB, RBOB, jet fuel, heating oil and ULSD barge assessments with a volume range of 25,000-100,000 barrels, Platts will reflect values across all three volume ranges during the MOC process in the final assessment.

For other FOB NYH barge assessments with a volume range of 25,000-75,000 barrels, in the event of an observed conflict between values in the two volume ranges during the MOC process, values in the smaller 25,000-50,000 barrel range would prevail in the final assessment. Platts invites further comment on these assessment calculations.

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 above.

Please send any further feedback or comments 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.