Argus US Gulf Colonial pipeline Cbob

Price assessment details

What is Colonial Cbob?

Conventional blendstock for oxygenate blending (Cbob) is the US standard gasoline, typically blended with 10pc ethanol to make a finished on-road gasoline. In the Colonial market, the fuel is delivered to buyers at Colonial Pipeline injection points across the Gulf coast. It is then the buyer’s responsibility to pipe the fuel on to terminals along the eastern US seaboard. Spot trade is standardised to injection at Pasadena, Texas, and buyers compensate sellers for product that is delivered further downstream, closer to the final customer.

What are the advantages of the Argus Colonial Cbob price assessment?

Argus incorporates more Cbob market liquidity than any other price reporting agency, gathering trade data throughout the entire working day and from all segments of the market. Refiners, distributors, retailers, and trading companies have accepted this methodology as the most appropriate, the most representative and the most robust.

How is this assessment used?

Argus Colonial Cbob price assessments are used in long-term contracts, spot transactions, downstream pricing, transfer pricing, spot sales and exports overseas. These price assessments are also used to settle financial derivatives listed on ICE.

Argus Colonial Cbob futures

These contracts settle against the daily Argus price assessments set out in the contract terms – typically an average of assessments over the named calendar month.

Argus Colonial Cbob futures can be used to lock in existing exposure to Argus Cbob prices, or simply to take new financial exposure to this market.

Use cases include:

• Hedging long-term supply contracts all the way from the US Gulf to the mid-Atlantic
• Hedging arbitrage trades between regions
• Taking exposure to Gulf coast time structure
• Trading Gulf coast gasoline cracks