Platts to amend volumes for Houston, New Orleans bunkers assessments

S&P Global Platts will amend the ex-wharf and delivered volumes assessed for the Houston and New Orleans bunkers markets for Marine Fuel 0.5%S and IFO 380, and establish a minimum and maximum volume for MGO in those ports, effective Nov. 1, 2021.

Platts will change the volume range for Marine Fuel 0.5%S and IFO 380 to 500 to 750 mt on both ex-wharf and delivered basis. The current range is 250 to 1,000 mt on an ex-wharf basis and 250 to 500 mt on a delivered basis.

Platts originally proposed a minimum and maximum range for Marine Fuel 0.5%S and IFO 380 of 500-1,000 mt, but market feedback suggested a more narrow range will provide more precise assessments given how bunkers prices can vary on an ex-wharf basis by volume.

For volumes outside this range, Platts will survey the market to determine the price spread back to volumes between 500 mt and 750 mt.

Platts will also establish a minimum and maximum range for MGO in Houston and New Orleans of 75 to 225 mt on both an ex-wharf and delivered basis.

Platts understands that MGO volumes within this range are typically traded and delivered in combination with another product, and the assessment will reflect value for these combination deals. Currently, Platts reflects a typical size of 150 mt ex-wharf and a typical size of 75 mt delivered.

The decision follows extensive feedback from the market and a review of Platts' published heards. Platts understands that bunkers prices can vary on an ex-wharf basis by volume, and the narrower volume ranges were chosen to reflect a significant proportion of trading activity while providing more precise assessments. Platts also understands that most trades on an ex-wharf basis are ultimately performed on a delivered basis, so aligning the volumes across both will reflect the market structure.

Please send all questions and comments to oilgroup@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.