Platts proposes new USGC CBOB derivatives assessments from Nov. 1

S&P Global Platts is proposing to launch US Gulf Coast CBOB derivative assessments from Nov. 1, 2021 to provide further transparency to the growing gasoline blendstock market on the Gulf Coast.

There has been growing spot market liquidity in the physical CBOB market, as well as on the derivative contracts, over the years due to a move away from trading in finished gasoline products to blendstocks like CBOB, which are then blended with ethanol to meet US fuel standards. Open interest in USGC CBOB (Platts) derivatives on the CME rose 94% year on year to 188,000 contracts in 2020. From January to July 2021, open interest rose 30% to 149,000 contracts compared with the same period in 2020.

The proposed new assessments would reflect the value of derivative contracts, with a minimum volume of 42,000 gallons, that settle against the average of the Platts CBOB 87 USGC prompt pipeline physical assessments (Code: AARQU00). This would complement the existing Platts USGC unleaded 87 gasoline derivatives that settle against the average of Platts Unl 87 USGC prompt pipeline assessments (Code: PGACT00).

Platts proposes to publish outright derivative assessments for the balance month, 12 forward months and four forward quarters. The balance month derivative contract will be published up to and including the 15th of each month.

Platts is also proposing to publish inter-month and inter-quarter time spreads; crack spread values for CBOB outright derivatives relative to Brent, WTI and Dubai frontline swaps, as well as CBOB derivative differentials to RBOB frontline derivatives over the same period. The proposed assessments would be published in US cents/gal and would reflect a 1:30 PM CT Houston close.

Please send any feedback, comments or questions to americas_products@spglobal.com and pricegroup@spglobal.com by Sept. 15, 2021.

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.