Platts to defer Singapore 2% fuel oil differential

Platts is continuing to review the potential for a new assessment of the physical market differential for 2% sulfur fuel oil cargoes loading from Singapore on an FOB basis.

Platts has deferred the launch of the differential assessment, previously announced for July 2, 2012, to a later date.

The considered assessment 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 180 CST 2% FO 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 180 CST HSFO around cargo loading dates.

This is in line with trading practices for other fuel oil grades in Singapore.

The new assessment would be published on Platts Global Alert, in Asia Pacific/Arab Gulf Marketscan, and in the Platts price assessment database.

Please send any remaining comments and questions to asia_products@platts.com and pricegroup@platts.com.