Platts clarifies evolving origin documentation practices in Asia fuel oil MOC

Platts, part of S&P Global Commodity Insights, would like to clarify that it has observed evolving market practice around the physical performance of trades published in the Singapore fuel oil cargo Market on Close assessment process, specifically around origin documentation.

Platts has observed that in the majority of both high-sulfur and low-sulfur fuel oil cargo trades published in the Singapore MOC process in recent months, buyers have sought, and sellers have provided, refinery Certificates of Origin for each of the components that have made up the cargo being loaded, at the time of performance.

Platts expects any request for origin-related documents post-trade to be bilaterally agreed between counterparties. In the event of a disagreement, however, Platts would review the reasonability of such requests, as well as what is typical trading practice between counterparties and in the wider market.

From the most recent observations, Platts would view the request for refinery Certificates of Origin for each of the components as in line with common market practice.

Effective March 1, 2023, Platts has not reflected Russian material as part of its open-origin low- and high-sulfur fuel oil cargo and bunker assessments in Asia and the Middle East. (https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/030123-platts-to-exclude-russia-origin-oil-from-asia-fuel-oil-cargo-and-bunker-assessments-from-march-1)

Please send any feedback, questions, or comments to asia_products@spglobal.com and PriceGroup@spglobal.com.

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