Platts opens consultation on European 1% fuel oil specifications

Platts, part of S&P Global Commodity Insights, is opening a consultation to review the specifications reflected in its Northwest European and Mediterranean 1% fuel oil barge and cargo assessments.

In particular, Platts is seeking feedback on the merchantability and fungibility of 1% fuel oil containing different levels of chemicals, and the different CN codes trading within the European market.

The scope of this consultation extends only to the 1% fuel oil market in Europe, due to understood changes in end-user requirements in the Mediterranean utility sector. Platts is aware of similar discussions surrounding chemicals in global fuel oil markets and continues to seek feedback on those markets, but feedback specific to those markets falls outside the scope of this consultation.

Following recent market feedback and activity in the Platts Market on Close assessment process, Platts understands that there is increasing demand for 1% fuel oil with guarantees on maximum chemical levels in Europe. Platts has noted particular interest from buyers specifying limits on indene, styrene, phenols, and dicyclopentadiene.

By this consultation, Platts seeks to understand:

• If there is a market-accepted standard level for chemicals in 1% fuel oil intended for utility and power generation shorts Europe, and whether any such limit would reflect levels on individual chemicals or the levels of multiple chemicals combined
• If the same limits would also apply to 1% fuel oil intended for consumption in adjacent markets, such as the market for bunker fuel blending components
• Further context surrounding the use of gas chromatography-mass spectrometry testing, in terms of deal performance
• Whether Platts should include maximum limits on chemicals in 1% fuel oil reflected in its 1% fuel oil cargo and barge assessments in Europe

Platts would like to remind that it only considers in its assessments commodities that are merchantable and fit for purpose. Platts fuel oil assessments shall not contain petrochemical wastes, residues from acid-catalyzed refining process, spent chemicals, waste lubricants, tar bottoms, or hazardous waste. Furthermore, product that contains any material beyond the trace level that is proven to cause significant ship engine damage is considered unmerchantable. Platts understands that high levels of chemicals in fuel oil can cause similar damage to industrial units and power generators. On detection of high GCMS levels, Platts may request more information from the seller to explain the source of specific chemicals in the oil.

In addition to the above, Platts also invites feedback on the merchantability and fungibility of 1% fuel oil assigned differing CN codes in Northwest Europe and the Mediterranean. Platts understands that the CN code allocated to a product is contingent on its aromatic content. Platts European and Mediterranean assessments currently reflect LSFO where the material has been assigned CN code 2707 9999. For further details surrounding CN codes reflected in Platts European 1% fuel oil, please see page 21 of the Platts European Refined Products Methodology guide.

Platts also invites any additional feedback on its 1% fuel oil specifications beyond the specific points above.

Please send any feedback, questions or comments to europe_products@spglobal.com and pricegroup@spglobal.com by March 31, 2025.

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 those not marked as confidential available upon request.