Platts to launch USGC CBOB derivatives assessments from Nov. 1

S&P Global Platts will 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 134% year on year to 15,600 contracts at the end of 2020, and has since risen further to stand at 23,300 contracts at the end of August.

The new assessments will reflect the value of derivative contracts, with a minimum volume of 1,000 barrels, that settle against the average of the Platts CBOB 87 USGC prompt pipeline physical assessments (Code: AARQU00). This will 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 will 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 will also 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 outright and differential assessments to RBOB frontline derivatives will be published in US cents/gal, while crack spreads will be in US$/b. All of the new assessments will reflect a 1:30 PM CT Houston close.

Please send any further feedback, comments or questions to americas_products@spglobal.com and pricegroup@spglobal.com.

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