Platts proposes to launch weighted indexes for Chicago CBOB, ULSD

Platts, part of S&P Global Energy, is proposing to launch Chicago basket indexes for gasoline and diesel from 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 proposed weightings would be calculated by tracking recent trades across the West Shore, Badger, and Wolverine pipelines, as well as the Buckeye Complex. Total reported trades would be compiled on a cyclical basis, assuming a minimum volume of 10,000 barrels where not specified. These trades will then be sorted by pipeline to determine the percentage contribution of each component.

The weighted index would be calculated from the average of the differentials to NYMEX futures for the West Shore/Badger pipelines, Wolverine pipeline and BCX assessments, adjusted by their corresponding weightings.

For example, if Platts is assessing Cycle 2 for Chicago ULSD and traded volumes from the previous cycles came out to 20% West Shore and 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.

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

The proposed Chicago basket indexes would be as follows:

Platts is concurrently seeking feedback on how to incorporate West Shore and Badger into the weighted index when the 1 psi waiver is in place during the summer. More information on how Platts will adjust the West Shore and Badger assessments in accordance with the 1 psi waiver can be found here.

Additionally, Platts seeks feedback on the naming conventions for the proposal. Platts proposes to amend the assessment name from Gasoline CBOB Chicago pipeline to Gasoline CBOB West Shore and 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 is also proposing to launch a separate West Shore/Badger assessment for Chicago ULSD; this would not replace the existing generic assessment, which would remain unchanged. The name of the new assessment would be ULSD Chicago West Shore and Badger Pipeline.

The indexes would appear on PGA pages 350, 351, 154, 24, 482, 410 and 411, as well as in US Marketscan, Oilgram Price Report, and on Platts Connect.

Please send all feedback and comments by Jan. 23 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.