Platts makes changes to Midwest CBOB gasoline assessments ahead of 2025 RVP waiver removal

Platts, part of S&P Global Commodity Insights, has made a number of changes to its Midwest CBOB gasoline assessments effective Feb. 3, 2025, ahead of the anticipated removal of an RVP waiver in eight Midwest states later this year.

The changes follow an extensive consultation period (opens in a new tab)which commenced in September 2024 and concluded with a proposal in a subscriber note published Nov. 26, 2024, found here(opens in a new tab). During this time, Platts assessed the impact of the waiver removal and whether the low RVP gasoline expected to be supplied should be reflected in existing or new assessments. Platts subsequently announced changes to the assessments on Dec. 30, 2024 in a note available here(opens in a new tab).

The waiver removal will lower the RVP limit for conventional gasoline in eight states -- Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin -- to 9 psi during the summer months, compared with the current 10, after blending with up to 10% ethanol. The removal of the 1-psi waiver is expected to alter the supply of CBOB in the region, impacting the Group 3 and Chicago markets.

Group 3

Platts current Group 3 assessments reflect product moving on the Oneok pipeline system on an FOB Tulsa, Oklahoma, basis.

Platts will continue to reflect the 9 RVP market in the summer months for the current assessments for sub-octane and Premium unleaded 91 gasoline in Group 3. At the same time, Platts has launched new assessments for the same two grades reflecting the new low RVP quality in the summer with effect from Feb 3, 2025. The new assessments are published on both an outright basis and as differentials to NYMEX RBOB futures and are published year-round.

The existing and new assessments are as follows:

Chicago

Platts generic Chicago CBOB assessment previously reflected the lowest value between the Badger, West Shore and Wolverine pipelines.

With the removal of the waiver, Badger and West Shore pipelines are only expected to handle low RVP CBOB, while Wolverine is expected to ship the higher 9 RVP product in the summer.

Platts has therefore removed Wolverine from the basket underpinning the generic Chicago assessment with effect from Feb. 3, 2025. The generic Chicago assessment will reflect the lower RVP CBOB being shipped on West Shore and Badger in the summer.

Platts had earlier proposed including a new low RVP CBOB assessment at the Buckeye Complex storage hub (BCX) in its generic Chicago CBOB assessment in place of Wolverine. However, BCX recently announced that the complex will service the higher 9 RVP production in 2025, subject to change. As a result, Platts will not be launching assessments for low RVP CBOB at the Buckeye Complex at this point, or including the [low RVP] BCX CBOB assessment in the generic Chicago basket.

Platts existing stand-alone assessments for CBOB on the Wolverine pipeline and at the BCX complex will continue to be published and will remain unchanged, reflecting higher 9 RVP CBOB in the summer. Platts will continue to monitor any updates and implement changes as needed.

The assessments impacted by the proposed changes are as follows:

Platts published an updated RVP calendar (opens in a new tab)on Feb. 3 for these assessments detailing the timing of the expected RVP changes throughout 2025. The calendar will be subject to change in accordance with updates from Oneok, Buckeye, West Shore and Wolverine.

The changes are based on current market expectations relating to the removal of the waiver and the impact on resulting pipelines along with other infrastructure. Should these circumstances change, Platts may update its methodology as necessary through the publication of additional subscriber notes.

The assessments impacted by these changes appear in Platts US Marketscan, Oilgram Price Report, Platts Global Alert and Platts Refined Products Alert pages 160, 320, 321.

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

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