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What is Platts FOB Singapore Gasoil?
What is Platts FOB Singapore Gasoil?
The term 'Platts FOB Singapore Gasoil' refers to the physical price of gasoil loading on FOB Straits 15-30 days forward from the date of publication. Gasoil grades assessed by S&P Global Commodity Insights include 2500 ppm, 500 ppm, 50 ppm and 10 ppm sulfur gasoil.
The Gasoil benchmark price is the primary physical market pricing reference for gasoil loading or delivered to traders, refiners and end users in Asia.
Underpinned by firm economic growth in Asia, demand for the multi-use fuel has grown and now Asia is a leading producer of gasoil as well as a key consumer, thus making the FOB Singapore Gasoil assessment a key pricing benchmark for the whole world.
Annual gasoil exports from the main regional refinery centers South Korea and India have risen to more than 20 million mt each, while large demand centers in Asia Pacific, such as Australia, see imports of similar volumes, data from the Joint Oil Data Initiative shows. -
How do we assess Platts FOB Singapore Gasoil?
How do we assess Platts FOB Singapore Gasoil?
S&P Global Commodity Insights Singapore physical gasoil assessments reflect a minimum of 150,000 barrels, maximum 250,000 barrels, loading 15-30 days forward from the date of publication. Market participants should specify loading for a five-day date range at the time of submitting a bid of offer for publication in the assessment process.
Platts gasoil assessments are assessed by S&P Global Commodity Insights on a Market on Close assessment process basis. -
Evolution of Platts FOB Singapore Gasoil
Evolution of Platts FOB Singapore Gasoil
S&P Global Commodity Insights began assessing 5,000 ppm FOB Singapore gasoil in the early 1980s. As regional demand grew and sulfur requirements in gasoil lowered, S&P Global Singapore began adding assessments of more sulfur grades.
Other assessments include 2,500 ppm, which started a year earlier in 1999, and finally 10 ppm sulfur gasoil on November 3, 2008. S&P Global Commodity Insights launched the latter assessment in response to key importers in the region lowering their sulfur standards to 10 ppm, notably Australia in 2008.
On September 6, 2016, S&P Global opened a formal consultation on lowering the sulfur specification in the benchmark gasoil assessments.
Following extensive feedback and market engagement, on December 5 S&P Global Commodity Insights announced that it will lower the sulfur specification of its flagship Singapore and FOB Arab Gulf Gasoil assessments to 10 ppm from the current 500 ppm from January 2, 2018.
From January 2, 2018, Platts FOB Singapore, FOB Arab Gulf, FOB Arab Gulf LR2 and FOB Korea Gasoil assessments by S&P Global Commodity Insights will begin to reflect maximum 10 ppm sulfur. The following assessments and codes will be affected:
Assessment Codes- FOB Singapore Gasoil POABC00
- FOB Arab Gulf Gasoil POAAT00
- FOB Arab Gulf LR2 Gasoil AAKBT00
- FOB Korea Gasoil POAIE00
S&P Global Commodity Insights will also assess differentials and strips in these markets basis gasoil with maximum 10 ppm sulfur.
Note that Platts C+F Japan Gasoil assessment already reflects maximum 10 ppm sulfur gasoil.