SUBSCRIBER NOTE: Platts proposes to launch Fujairah ex-wharf fuel oil assessments from Apr 3

Following an extended period of discussion with the industry, S&P Global Platts proposes to launch Fujairah ex-wharf fuel oil assessments, starting from April 3, 2017.

Under the proposed assessment methodology, Platts ex-wharf Fujairah assessments would reflect spot trading activity in 5,000 mt parcels of 380 CST fuel oil for lifting three to 15 days from the date of publication. Platts would consider bids, offers and trades for volumes between 2,000 mt and up to a maximum of 7,000 mt in this new assessment, with values normalized to 5,000 mt where needed.

The assessments would reflect trading activity up to 4:30 pm Singapore time or 12:30 pm Fujairah time.

FUEL SPECIFICATIONS: Fuel quality generally conforming with that of RMG 380 CST would be reflected in the assessment. As such, sellers would be expected to supply material that is merchantable.

LAYCAN: Buyers/sellers would specify a loading laycan of three days within the assessment period of 3-15 days at the time of submitting bids or offers for publication in the assessment process.

LOADINGS: Parcels may be delivered via inter-tank transfers where possible, or to the buyer's nominated vessel/barge from an onshore terminal or offshore vessel within the port limits of Fujairah.

NOMINATION: Buyers would be expected to nominate the barge/vessel between two to five working days in advance of the load date as per standard industry practice. The sellers would need to notify the buyer of barge acceptance promptly and within a reasonable time. The acceptance would be subject to terminal availability.

BACKGROUND: Fujairah's position as the region's top bunkering port has been further cemented by the addition of large commercial oil storage capacity and emergence of a multitude of suppliers in recent years.

The new ex-wharf assessment will complement the delivered bunker fuel price assessments that Platts already publishes in Fujairah. In October 2016, Platts also began publishing independent price assessments for a range of refined oil products, including fuel oil, in the Middle East on a free-on-board Fujairah basis.

FEEDBACK: Please send all comments, feedback and questions by March 3, 2017 to asia_products@spglobal.com and pricegroup@spglobal.com.

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.