Platts launches indexes for Chicago CBOB, ULSD

Platts, part of S&P Global Energy, has launched Chicago basket indexes for gasoline and diesel effective March 2, incorporating the independent assessments for the major pipelines and Buckeye Complex and weighting them by trading volume, as well as adding a new, separate assessment for Chicago West Shore and Badger pipeline ULSD.

Feedback from market participants has indicated the need for Chicago-weighted basket indexes that reflect recent volumes traded on the Badger, West Shore and Wolverine pipelines, as well as the Buckeye Complex.

The weightings are calculated by tracking recent trades across the West Shore, Badger and Wolverine pipelines, as well as the Buckeye Complex. Total reported trades are compiled on a cyclical basis, assuming a minimum volume of 10,000 barrels where not specified. These trades are then sorted by pipeline to determine the percentage contribution of each component.

The index is calculated from the average of the differentials to NYMEX futures for the West Shore/Badger pipeline, Wolverine pipeline and BCX assessments, adjusted by their corresponding weightings. The gasoline assessment incorporates a blend of 7.8 and 9 RVP grades during the summer months, when the 1 psi waiver is removed. More information on how Platts will adjust the West Shore/Badger assessment in accordance with the 1 psi waiver can be found here.

For example, if Platts is assessing Cycle 2 for Chicago ULSD and traded volumes from the previous cycles came out to 20% West Shore/Badger, 30% Wolverine and 50% Buckeye Complex and the pipeline differentials were assessed at plus 2 cents/gal, plus 3 cents/gal and plus 3.50 cents/gal, respectively, the index basket differential would be plus 3.05 cents/gal.

This launch will not affect existing assessments, which follow the Market on Close assessment process.

Platts current assessments for Chicago CBOB and ULSD are as follows:

Additionally, Platts amended the assessment name from Gasoline CBOB Chicago pipeline to Gasoline CBOB West Shore/Badger pipeline to better represent the products assessed. This change follows the Feb. 3, 2025, removal of the Wolverine Pipeline from the basket, underpinning the generic Chicago assessment due to the anticipated removal of the 1 psi waiver in multiple Midwest states and a division in RVP.

Platts also launched a separate West Shore/Badger assessment for Chicago ULSD; this will not replace the existing generic assessment, which will remain unchanged. The name of the new assessment will be ULSD Chicago West Shore/Badger Pipeline.

The new assessments and existing assessments affected by the changes are as follows:

The indexes will appear on PGA pages 24, 28, 160, 320, 321, 420, 421, 481, as well as in US Marketscan, Oilgram Price Report, Oilgram Price Report Price Average Supplement, Ethanol Weekly and on Platts Core.

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

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.