Platts proposes to amend volumes for US Atlantic Coast bunkers assessments

Platts, part of S&P Global Commodity Insights, proposes to amend the ex-wharf and delivered volumes assessed for several North American Atlantic Coast bunkers markets for Marine Fuel 0.5%S and IFO 380, and establish a minimum and maximum volume for MGO in those ports, effective April 1.

Platts currently assesses bunkers in New York, Philadelphia, Montreal, Norfolk, Savannah, and Charleston on North Americas Atlantic Coast. The proposed changes will apply to all ports except for Montreal, which will have unique changes separately proposed.

Platts proposes to change the volume range for Marine Fuel 0.5%S and IFO 380 to 500 to 1,000 mt on both ex-wharf and delivered basis. The current range is 250-1,000 mt on an ex-wharf basis and 250-500 mt on a delivered basis.

Platts understands that bunkers prices can vary on an ex-wharf basis by volume, and the narrower volume ranges are proposed to reflect a significant proportion of trading activity while providing more precise assessments.

Platts also understands that most trades on an ex-wharf basis are ultimately performed on a delivered basis, so aligning the volumes across both will reflect the market structure.

The proposed volumes are based on an analysis of Platts heards and feedback from the market. For volumes outside this range, Platts will survey the market to determine the price spread back to volumes between 500-1,000 mt.

Platts also proposes to establish a minimum and maximum range for MGO in these ports of 100-400 mt on both an ex-wharf and delivered basis.

Platts understands that MGO volumes within this range are typically traded and delivered in combination with another product, and the assessment will reflect value for these combination deals. Currently, Platts reflects a typical size of 150 mt ex-wharf and a typical size of 75 mt delivered.

Please send all questions and comments to oilgroup@spglobal.com and pricegroup@spglobal.com by March 17.

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.