Precios de referencia

Platts American GulfCoast Select (Platts AGS)

  • What is Platts American GulfCoast Select?
  • How do we assess Platts American GulfCoast Select?
  • Evolution of Platts American GulfCoast Select
  • Platts American GulfCoast Select – Export Crude Commentary

What is Platts American GulfCoast Select?


Platts AGS reflects the value of light sweet crude oil loading 15-45 days forward on an FOB basis from locations along the US Gulf Coast including Houston, Corpus Christi, Beaumont, Nederland, Texas City, and Port Arthur, with the most competitive location on a cargo-size normalized basis setting the price assessment.

This crude oil assessment reflects a typical cargo size of 700,000 barrels, with bids, offers and trades between 550,000 and 800,000 barrels eligible for use in the assessment but normalized to reflect the freight economics of the typical cargo size. The assessment reflects the Platts WTI Midland grade supplied directly from the Permian Basin on the BridgeTex, Longhorn, Midland-to-Echo I/II, Cactus I/II, EPIC, Gray Oak, and Permian Express pipelines with API between 40 and 44 and .2% sulfur limit, among other specifications.

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How do we assess Platts American GulfCoast Select?

Platts AGS is assessed based on market information gathered during the day by market reporting staff and bids, offers, and trades published on the Platts eWindow communication tool. The assessment follows Platts Market on Close principles with bids, offers, and trades – converted to outright values for comparison – determining value at the 1:30 Central Time close.

Evolution of Platts American GulfCoast Select

Platts AGS brings the US oil market a new benchmark assessment that reflects the value of high-quality, export-ready crude at the intersection of domestic and global demand, free of any distortion from logistics.

Platts American GulfCoast Select – Export Crude Commentary

  • US weekly crude exports last week average 3.651 mil b/d: EIA
  • Weaker differentials favorable for US crude arbitrage economics

Platts American GulfCoast Select was assessed at $73.75/b on June 23, as the assessed differential for the grade against both the 15 to 45 days forward NYMEX WTI strip and forward Dated Brent strip strengthened on the day, while a fresh report from the US Energy Information Administration showed a slight downtick in crude exports last week.

As a differential to the 15 to 45 days forward NYMEX WTI strip, was assessed 14 cents/b stronger on the day at a $1.11/b premium. Against the forward Dated Brent strip, Platts AGS was assessed 4 cents/b stronger at a 75 cents/b discount.

US crude exports over the week ended June 18 averaged 3.651 million b/d, down 233,000 b/d from the week prior, according to data from the US Energy Information Administration, as recent tightness in arbitrage economics could find relief in falling US Gulf Coast differentials.

While the weekly average was down on the week, the four-week moving-average for the period ended on June 18 was reported 55,000 b/d higher from the prior four-week period at 3.253 million b/d – the highest four-week moving-average since the period ended on Feb. 12.

These high export levels could come under pressure as recent changes in arbitrage economics have hurt the competitiveness of US crude abroad.

The Brent/WTI swaps spread, one indicator of the competitiveness of US crude on the international market, has seen a sharp narrowing in recent days, even touching multi-year lows. Since June 10, the Brent/WTI swaps spread has averaged $1.76/b, while through the first five months of 2021, the spread averaged $2.97/b. As the spread narrowed, WTI-based crudes are generally seen as less competitive versus those based on Brent.

Even with USGC crude differentials falling to more than one-year-lows in recent days, export economics remain difficult for US crudes. While this weakening on USGC crude differentials has helped-out arbitrage economics, there remains more competitive options amongst other Atlantic basin crudes, particularly amongst sweet grades.

The arbitrage incentive for WTI MEH crude into Rotterdam against local Forties was reported at 27 cents/b on June 22, according to the Platts Crude Arbflow calculator, well above the month-to-date average of minus 54 cents/b as recent weakening on the grade improved economics. By comparison, the arbitrage incentive for Nigeria’s Bonny Light grade into Rotterdam against Forties was reported at $1.58/b on June 22, while the month-to-date average was $1.08/b.

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