Platts to launch LSWR cash differential assessment

Following industry feedback, Platts will launch a new assessment of the physical market differential for LSWR loading from Indonesia on an FOB basis.

The differential assessment, which will be launched on July 2, 2012, will reflect the value of LSWR 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 Indonesia LSWR since 2010. Counterparties 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 residual fuel oil grades in Asia.

The new assessment will be published on Platts Global Alert, in the Asia Pacific/Arab Gulf Marketscan, and in the Platts price assessment database under the code AAWTX00. Please send any remaining comments and questions to asia_products@platts.com and pricegroup@platts.com.