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What is Heavy Residue FOB Fujairah Cargo?
What is Heavy Residue FOB Fujairah Cargo?
On October 3, 2016, S&P Global Commodity Insights launched a new FOB Fujairah 380 CST fuel oil cargo assessment and monthly average FOB Fujairah 380 CST fuel oil cargo assessment, as well as a daily 380 CST fuel oil Arab Gulf strip and a monthly average 380 CST fuel oil Arab Gulf strip.
S&P Global Commodity Insights assesses an outright value for 380 CST fuel oil cargoes on FOB Fujairah basis. The assessment reflects the value of 380 CST fuel oil cargoes, typically 20,000 to 40,000 mt each, for loading 20-40 days forward from the date of publication.
On January 2, 2019, S&P Global Commodity Insights launched a new FOB Fujairah Marine Fuel 0.5% cargo assessment and monthly average FOB Fujairah Marine Fuel 0.5% cargo assessment, as well as a daily Marine Fuel 0.5% Arab Gulf strip and a monthly average Marine Fuel 0.5% Arab Gulf strip.
S&P Global Commodity Insights assesses an outright value for Marine Fuel 0.5% cargoes on FOB Fujairah basis. The assessment reflects bids, offers, and trades for cargoes typically 20,000 to 40,000 mt each, for loading 20-40 days forward from the date of publication.
380 CST fuel oil is a residual fuel typically used as a bunker fuel for vessels with scrubbers and also for power generation. Marine Fuel 0.5% is typically used as a bunker fuel for vessels without scrubbers as it is IMO-compliant with a sulfur limit of maximum 0.5%.
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How does Platts assess Heavy Residue FOB Fujairah Cargo?
How does Platts assess Heavy Residue FOB Fujairah Cargo?
For FOB Fujairah 380 CST Fuel Oil outright the assessment equals the sum of Middle East 380 CST Fuel Oil spot differential (premium/discount) and MOPAG 380 CST strip. The MOPAG strip is calculated using 380 CST Fuel Oil derivatives that settle on Platts Middle East 380 CST Fuel Oil netback assessments. S&P Global Commodity Insights publishes assessments for MOPAG 380 CST Fuel Oil derivatives for Balance Month, Month 1, and Month 2, as well as the MOPAG 380 CST Fuel Oil strip.
For Marine Fuel 0.5% cargo outright the assessment equals the sum of Marine Fuel 0.5% Fujairah spot differential (premium/discount) and the MOPFUJ Marine Fuel 0.5% strip. The MOPFUJ Strip is calculated using Marine Fuel 0.5% FOB Fujairah cargo derivatives that settle on the Platts Marine Fuel 0.5% Fujairah spot assessment. S&P Global Commodity Insights also publishes assessments for Marine Fuel 0.5% Fujairah derivatives for Balance Month, Month 1, and Month 2, as well as the MOFUJ Marine Fuel 0.5% strip.
S&P Global Commodity Insights uses a Market-on-Close (MOC) assessment methodology which is a day-long process that ends at 12:30pm Fujairah time—the timestamp for Platts oil assessments in Asia and the Middle East.
Structured and highly transparent, the MOC is a process in which oil bids, offers and transactions are submitted by participants to S&P Global Commodity Insights editors and published in real-time throughout the day until the market close. Following the close, our editors examine the data gathered through the day, conduct their analysis, and develop price assessments that reflect an end-of-day value.