Platts proposes new Brent differential assessments for US feedstocks

S&P Global Platts is proposing to publish differentials for its existing US Gulf Coast and US Atlantic Coast high- and low-sulfur vacuum gasoil and low-sulfur straight run fuel oil assessments versus the prevailing front-month ICE Brent futures contract, effective Feb. 1, 2021, in order to bring greater transparency to the assessed markets.

Platts understands that Brent-related pricing has become increasingly prevalent in physical feedstock markets in the US in recent years. Platts proposes to start publishing these differentials, alongside the outright price assessments Platts already publishes for these markets as well as existing differentials to NYMEX WTI crude futures.

The differentials will be assessed versus the prevailing front month ICE Brent crude futures. Platts is proposing to roll to the next month on the day the front month contract expires and is seeking feedback regarding the basis month roll.

Additionally, Platts is seeking feedback on applying the front-month differential for the entire 5-15 day feedstock laycan when evaluating Brent-related bids, offers and trades.

Platts may publish bids, offers and trades priced off forward months, but these will be normalized for assessment purposes.

The differentials that Platts is proposing to add are:

VGO 0.5% Sulfur CIF USGC Barge vs ICE Brent

VGO 2% Sulfur CIF USGC Barge vs ICE Brent

VGO 0.5% Sulfur CIF USAC Barge vs ICE Brent

VGO 2% Sulfur CIF USAC Barge vs ICE Brent

Straight Run Low-Sulfur Fuel Oil USGC vs ICE Brent

Straight Run Low-Sulfur Fuel Oil USAC vs ICE Brent

Separately, Platts has also proposed discontinuing from Feb. 1, 2021 other feedstock assessments in the US: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/102120-platts-proposes-discontinuation-of-some-us-feedstock-assessments.

Please send any questions, comments or feedback to americas_products@spglobal.com and pricegroup@spglobal.com by Nov. 20, 2020.

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.

To see this note and others, please go to https://www.spglobal.com/platts/en/our-methodology/subscriber-notes.