Subscriber note: Platts to launch Singapore 2% fuel oil differential

Platts proposes to launch a new assessment of the physical market differential for 2% sulfur fuel oil cargoes loading from Singapore on an FOB basis. The differential assessment, planned for launch on July 2, 2012, would reflect the value of medium sulfur fuel oil trading as a premium or discount relative to the price published by Platts around the time of loading for 180 CST high sulfur fuel oil on an FOB Singapore basis. Platts has published an assessment of outright prices for FOB Singapore FO 180 CST 2% since 1994. Since that time, market activity has evolved and counterparties now regularly bid, offer and trade the grade on a differential basis against Mean of Platts Singapore HSFO 180 CST around cargo loading dates. This is in line with trading practices for other fuel oil grades in Singapore. The new assessment will be published on Platts Global Alert, in Asia Pacific/Arab Gulf Marketscan, and in the Platts price assessment database. Please send all comments and questions by June 15, 2012 to asia_products@platts.com and pricegroup@platts.com.