Platts launches USGC CBOB derivatives assessments from Nov. 1

S&P Global Platts has launched 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 28,400 contracts at the end of September.

Platts first proposed launching these assessments in a subscriber note published Aug. 30: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/083021-platts-proposes-new-usgc-cbob-derivatives-assessments-from-nov-1

The new assessments 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 publishes outright derivative assessments for the balance month, 12 forward months and four forward quarters. The balance month derivative contract is published up to and including the 15th of each month.

Platts also publishes inter-month and inter-quarter time spreads; crack spread values for CBOB outright derivatives relative to Brent, WTI and Dubai frontline swaps; and CBOB derivative differentials to RBOB frontline derivatives over the same period.

The outright and differential assessments to RBOB frontline derivatives are published in US cents/gal, while crack spreads are in US$/b. All of the new assessments reflect a 1:30 PM CT Houston close.

These new assessments are published on Platts Forward Curves (PPU) pages 643 and 644. A list of the Platts price database codes for these derivatives assessments can be found at: https://www.spglobal.com/platts/en/our-methodology/price-symbols/101521-new-usgc-cbob-derivatives-symbols. Please send any further feedback, comments or questions to americas_products@spglobal.com and pricegroup@spglobal.com.

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