SUBSCRIBER NOTE: Platts proposes to reflect ISO 2010 standards in bunker fuel assessments

S&P Global Platts proposes to begin reflecting International Organization for Standardization's current ISO 8217:2010 standards in all its bunker fuel assessments as well as key fuel oil cargo and barge assessments globally from January 2, 2019.

Globally, Platts assesses IFO 180 CST, IFO 380 CST and IFO 500 CST residual marine fuels at a range of locations on ex-wharf and delivered basis.

Platts also assesses fuel oil cargoes in several key locations, including Houston, Rotterdam, Fujairah, the Mediterranean and Singapore, with specifications that generally allow deliverability of material in the local bunker fuel markets.

Several key fuel cargo and barge benchmarks would be affected by this proposed change in specification, including several that underpin financial derivatives markets as well as term physical contracts.

These include Singapore HSFO 180 CST (market database code PUADV00); Singapore HSFO 380 CST (code PPXDK00); FOB AG HSFO 180 CST (code PUABE00); FOB AG HSFO 380 CST (code AAIDC00); USGC HSFO (code PUAFZ00); USGC RMG 380 (code PUBDM00), and FOB Rotterdam Fuel oil 3.5% barges (code PUABC00).

Since January 3, 2012, these assessments have reflected revised bunker fuel specifications set out by the International Convention for the Prevention of Pollution from Ships, or MARPOL, that limit sulfur content to a maximum of 3.5%.

In addition, Platts currently assesses Marine Gasoil and Marine Diesel fuels in several locations globally, with sulfur limits varying from 0.1% to 2% depending on the grade and location.

These assessments currently reflect specifications defined by the International Organization for Standardization in document ISO 8217:2005 (E) -- Petroleum products -- Fuels (class F) -- Specifications of marine fuels, with the exception of IFO 500 CST bunker fuel assessments in the US and Europe which already reflect ISO 8217:2010 Petroleum products -- Fuels (class F) standards.

The proposal to begin reflecting ISO 8217:2010 Petroleum products -- Fuels (class F) standards in all other bunker fuel assessments and key fuel oil cargo assessments globally from 2019 follows extensive consultation with the industry, after Platts opened a formal review of its global fuel oil and bunker fuel assessments in a subscriber note published February 20, 2017.

The proposed change will align the specification reflected in Platts price assessments to improving global quality standards in the marine fuel market.

Global fuel standards could see further evolution ahead of the planned introduction of new sulfur limits for marine fuels by the International Maritime Organization from January 1, 2020.

Platts will continue to regularly review market conditions, and will monitor for evidence that newer standards are being traded more broadly in the market.

Please send all comments, feedback and questions to oilgroup@spglobal.com and pricegroup@spglobal.com by December 29, 2017.

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.