Platts opens consultation on dead prompt assessments for US Atlantic Coast refined products

Platts, part of S&P Global Commodity Insights, has opened a consultation on possible new assessments reflecting dead prompt barge loadings for US Atlantic Coast refined products markets.

Specifically, Platts is seeking feedback on the relevance and demand for USAC dead prompt barge assessments for RBOB, CBOB and ultra low sulfur diesel, on an FOB New York Harbor basis, reflecting loadings one to three days forward from the date of publication.

Currently, all Platts USAC gasoline and distillate barge assessments reflect product loading three to seven days forward from the date of publication on an FOB New York Harbor basis.

Barge assessments currently reflect a minimum volume of 25,000 barrels and a maximum volume of either 75,000 or 100,000 barrels.

Platts USAC barge assessments reflect market activity where the seller nominates a loading terminal three days ahead of the first day of a three-day laycan, including at least two full business days.

The possible new dead prompt assessments would not replace existing USAC barge assessments, but would instead be intended to provide supplementary price transparency into these markets, which in recent years have more often seen longer-than-usual periods of steep backwardation.

Platts understands that in such periods of steep backwardation, prompt barrels are worth much more than the typical barge loading time frame of three to seven days out, and trading activity in turn may switch to purchasing as close to loading as possible to avoid the high costs of holding inventory.

In this consultation, Platts is also inviting feedback on the following:

• What is an appropriate timing for assessing dead prompt loading/s, such as one to three days forward or one to two days?
• What is the appropriate volume range for bids, offers and trades to be reflected for dead prompt loadings?
• What are nomination standards for dead prompt barge loadings?
• Would other refined products, such as jet fuel, trade on a similar dead prompt basis as RBOB, CBOB, and ULSD barges?
• Should Platts also assess dead prompt barrels for products loading into the Buckeye Pipeline at Linden, New Jersey?
• Would the volume range for Buckeye Pipeline trades be different to barge loadings?

Please send all comments or questions to americas_products@spglobal.com and pricegroup@spglobal.com by Nov. 20, 2023.

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.