Merchantability of low viscosity Marine Fuel 0.5%S cargoes in Platts MOC

S&P Global Platts would like to remind market participants that Platts oil assessments reflect products meeting the parameters detailed in its published methodology, with a requirement that oil must reflect broadly merchantable quality, including viscosity levels.

Any Marine Fuel 0.5% sulfur cargo delivered as a result of a transaction completed and reported during the Platts Market on Close assessment process should be broadly deliverable. Market participants should be aware of local regulations or logistical constraints at specific delivery locations that may impact merchantability or deliverability of the product.

Platts understands that residual marine grade fuels with a viscosity of at least 30 CST are currently considered broadly deliverable. Platts does not reflect Marine Fuel 0.5% sulfur cargoes in its assessment process where the fuel is demonstrably not acceptable or broadly deliverable to bunker buyers.

Platts will closely observe the market to ensure its assessments at each location continue to reflect evolving specifications and industry standards with regards to 0.5% sulfur marine fuels. Barrels traded within the MOC process should not be unreasonably rejected by an entity, and any rejection based on quality or logistics is subject to Platts review.

Platts Marine Fuel 0.5% sulfur cargo and bunker assessments reflect specifications for RMG fuels as defined by the International Organization for Standardization in document ISO 8217:2010 Petroleum products -- Fuels (class F) -- Specifications of marine fuels, but with a maximum sulfur limit of 0.5%. All cargoes delivered as a result of transactions reported during the Platts MOC process must be tested against all parameters of the RMG standards, including viscosity.

Platts welcomes feedback on the above issues, including quality specifications and logistical standards at all locations. Please provide comments or feedback to oilgroup and pricegroup. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.