Platts launches new assessments for USGC distillate waterborne markets

Platts launches new assessments for USGC distillate waterborne markets

S&P Global Platts has launched 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 Sept. 1.

Five assessments 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.

This launch follows a decision note published July 27: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/072720-platts-to-launch-new-assessments-for-usgc-distillate-waterborne-markets

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 reflect the price for loading and quality on a FOB basis in Houston, 7-21 days forward from the day of publication. They are 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, are 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 publishes for the USGC and Caribbean, and for fuel delivered to Latin America. The corresponding relationships for these differentials to current assessments are as follows:

Additionally, Platts launched 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 represent barges assessed by Platts for 50,000-125,000 barrels loading 10-18 days from the day of publication.

The list of newly-launched assessments is as follows:

Please send any feedback to americas_products@spglobal.com and pricegroup@spglobal.com.

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