Platts proposes to discontinue USAC 0.3%S LP, HP, 0.7%S, 2.2%S fuel oil assessments

Following a formal consultation, S&P Global Platts proposes to discontinue the New York Harbor 0.3%S HP, 0.3% LP, 0.7%S and 2.2%S fuel oil assessments effective January 4, 2021.

This proposal follows a subscriber note that opened a formal consultation on all US Atlantic Coast fuel oil assessments that began on April 13: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/041320-platts-opens-consultation-on-usac-residual-fuel-oil-assessments

The affected assessments are as follows:

NYH 0.3%S HP: PUAAE00

NYH 0.3%S LP: PUAAB00

NYH 0.7%S: PUAAH00

NYH 2.2%S: PUAAU00 NYH

0.3%S HP vs NYH 1% MOPS: AAUGA00

NYH 0.3%S LP vs NYH 1% MOPS: AAUGB00

NYH 0.7%S vs NYH 1% MOPS: AAUGC00

NYH 2.2%S vs NYH 1% MOPS: AAUGE00

Platts understands that while there remains local demand of low sulfur fuel oil for power generation and heating purposes, this demand has seen a significant decline in recent years. Platts also understands that the specifications represented by NYH 0.3%S LP, 0.3%S HP and 0.7%S do not meet any broad-based end-user demand in the region without subsequent blending.

Demand in the USAC has shifted towards a 0.5%S product for power generation. Oil-fired power generation use has also shifted towards No. 2 or No. 4 oil due to ease of use and/or state regulations.

Most of the LSFO for power generation that does trade around New York Harbor is for small volumes, and is done on a term basis with little spot activity. This differs from more liquid spot markets such as those reflected in Platts NYH 1%S and USGC HSFO assessments, which are used as global benchmarks yet also have significant local physical market flows.

Platts also understands that there has been a marked decline for high sulfur fuel oil for power generation, and there is now insufficient physical flow to support the NYH 2.2%S assessment.

These assessments appear on Platts Global Alert page 30, 38, 39, 152, 510 and 511. The assessments also appear in Platts US Marketscan, Platts Oilgram Price Report, Platts European Marketscan, Platts Gas Daily and the Platts price database.

Please send any feedback by July 6, 2020, on this proposal to americas_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.