SUBSCRIBER NOTE: LSFO cargo sediment limit, ULO in Platts Europe MOC

As noted in the methodology guide for Europe and Africa refined products published by S&P Global Platts, assessments by Platts represent the spot market value for a physical commodity at which a standard, repeatable transaction for merchantable material may take place.

In low sulfur fuel oil (LSFO) cargoes, Platts understands it is typical for suppliers to meet broadly shared end-user requirements around sediment, namely a guarantee to meet 0.10 (mass %) maximum sediment under the three sediment tests covered within ISO:8217 standards: Total Sediment Existent (TSE), Total Sediment Potential (TSP), and Total Sediment Accelerated (TSA).

Platts, therefore, considers that merchantable material should meet such a requirement.

No addition of Used Lubricant Oil (ULO) is also a considered to be a typical expectation for merchantable specification LSFO.

Offers of LSFO cargoes submitted for publication and consideration during the Platts Market on Close assessment process in Europe should clearly indicate if the material offered does not meet either, or both, of these requirements.

Such offers may be subject to normalization in value for assessment.

Similarly, sellers expressing interest in hitting bids published during the Platts MOC process are also expected to supply material that meets merchantable standards, including the above specification expectations, to the buyer, unless the buyer has expressly stated different specifications in a published bid.

Please send any comments or questions to europe_products@spglobal.com with a CC to pricegroup@spglobal.com.