Platts confirms density requirements, reference conversion factor for Marine Fuel 0.5% assessments

Following an extended market consultation, S&P Global Platts confirms that it will continue to reflect RMG specifications for its Marine Fuel 0.5% assessments in all locations, including a maximum specific gravity at 991 kg/cu m and an equivalent reference conversion factor of 6.35 barrels/metric ton.

Platts launched assessments for Marine Fuel loading in Singapore, Fujairah, Rotterdam, Houston and New York in January 2019. Since that time, Platts has continued to review the specifications reflected in these assessments, including through the collection of data from market participants on physically delivered material. Platts analysis of this data demonstrates a consistently wide range of density, from 870 to 991 kg/cu m, with an average of above 950 kg/cu m. This would imply a range of possible conversion factors for material from 7.2 b/mt to 6.35 b/mt.

Platts employs a conversion factor for its fuel oil assessments that reflects the maximum density deliverable, as lighter material is typically valued higher in marine fuel markets, and will continue that practice with these assessments to ensure clarity and certainty of conversion of value between mass in metric tons, and volume in barrels.

Platts has separately proposed to add a minimum viscosity of 30 CST to its global Marine Fuel 0.5% cargo, barge and bunkers assessments in a note published February 10, and available here:

https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/021020-platts-proposes-to-add-minimum-viscosity-of-30-cst-to-global-marine-fuel-05-assessments

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