Subscriber note: Platts to amend Singapore 2% sulfur fuel oil methodology

Following a detailed review of the market relationship between medium sulfur and low sulfur fuel oil FOB Singapore, Platts proposes to amend its methodology for assessing FOB Singapore 180 CST 2% sulfur cargoes. With effect from January 2, 2014, Platts intends to assess this value by applying a standard quality premium to its benchmark FOB Singapore HSFO 180 CST 3.5% sulfur assessment. Platts proposes to establish this quality premium at 2.25% of the base value of FOB Singapore HSFO 180 CST 3.5%. For example, if Platts assesses the value of HSFO 180 CST 3.5% at $600/mt, the quality premium would be $13.50/mt and the outright price assessment for 180 CST 2% would be $613.50/mt. Platts is making this adjustment to reflect the fact that liquidity in the medium sulfur fuel oil market has diminished to very low levels across Asia. The proposed value reflects the relative premiums for the medium sulfur fuel over the past two years. Please send submissions for the review process to asia_products@platts.com and pricegroup@platts.com by December 15, 2013. 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.