Platts amends methodology for USAC 0.3%S LP, HP, 0.7%S fuel oil assessments

S&P Global Platts has amended its methodology for assessing the US Atlantic Coast 0.3%S high pour, 0.3%S low pour, and 0.7%S fuel oil assessments, with effect from Oct. 1, 2020, until the assessments are discontinued in January of 2022.

This was previously announced in a subscriber note July 17, 2020, and the methodology for the amendments were published on Aug. 26: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/082620-platts-to-amend-methodology-for-usac-03s-lp-hp-07s-fuel-oil-assessments

Beginning Oct. 1, 2020, Platts is no longer reflecting bids, offers and trades for 0.3%S HP, 0.3%S LP or 0.7%S in these assessments, and these assessments will be calculated on the following basis.

Platts is calculating the value of 0.3%S HP and 0.3%S LP using a ratio of 1.03 times the value of the US Atlantic Coast Marine Fuel 0.5%S assessment in $/b (assessment code AUAMA00) each day. Platts is calculating the value of 0.7%S fuel oil using a ratio of 0.90 times the USAC Marine Fuel 0.5%S $/b assessment.

These ratios were based on an analysis of historic sulfur spreads relative to 0.5%S Marine Fuel in the physical USAC market.

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