S&P Global Platts has launched assessments for financially settled derivatives contracts that settle against its physical Marine Fuel 0.5% assessments in Asia, the Middle East, Europe and the US from May 2, 2019. These assessments were first proposed in a subscriber note published April 8, 2019: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/040819-platts-to-publish-marine-fuel-05-derivatives-from-may-2-2019
The derivatives assessments reflect contracts that settle against the average of the respective underlying physical assessment in each region that are listed as below. The metric ton-to-barrel conversion factor for the derivatives contracts is 6.35 -- in line with the conversion factor for Platts physical Marine Fuel 0.5% assessments and with the prevailing qualities of fuel oil.
ASIA: The underlying physical assessment is "FOB Singapore Marine Fuel 0.5%" (Price database code: AMFSA00). Platts publishes derivatives assessments for balance month, 12 subsequent months, inter-month spreads and four quarters from the month of publication. In addition, Platts publishes a MOPS strip for Marine Fuel 0.5% as well as an FOB Singapore Marine Fuel 0.5% differential to the strip.
MIDDLE EAST: The underlying physical assessment is "FOB Fujairah Marine Fuel 0.5%" (Code: AMFFA00). Platts publishes derivatives assessments for balance month and two subsequent months. In addition, Platts publishes a MOPFUJ strip for Marine Fuel 0.5% as well as an FOB Fujairah Marine Fuel 0.5% differential to the strip.
Details of the price database codes for these Asia and Middle East derivatives assessments, the fixed pages and publications can be found in the following link: https://www.spglobal.com/platts/en/our-methodology/price-symbols/040919-new-marine-fuel-05-derivative-asia-symbols
EUROPE: The underlying physical assessment is "FOB Rotterdam Marine Fuel 0.5% Barge" (Code: PUMFD00). Platts publishes derivatives assessments for balance month, 24 subsequent months, inter-month spreads, eight quarters and two calendar years from the month of publication. In addition, Platts publishes the differential to FO 3.5% FOB Rotterdam Barge derivatives and crack values relative to Brent 1st Line Swaps for the same period.
Details of the price database codes for these European derivatives assessments, the fixed pages and publications can be found in the following link: https://www.spglobal.com/platts/en/our-methodology/price-symbols/040919-new-marine-fuel-05-derivative-rotterdam-symbols
USGC: The underlying physical assessment is "USGC Marine Fuel 0.5%" (Code: AUGMA00). Platts publishes derivatives assessments for balance month, 12 subsequent months, inter-month spreads, four quarters and one calendar year from the month of publication. In addition, Platts publishes the differential to USGC HSFO derivatives for the same period.
Details of the price database codes for these USGC derivatives assessments, the fixed pages and publications can be found in the following link: https://www.spglobal.com/platts/en/our-methodology/price-symbols/041119-new-marine-fuel-05-derivative-usgc-symbols
MOC PUBLICATION GUIDELINES: Platts Marine Fuel 0.5% derivatives MOC process follows existing MOC guidelines for HSFO derivatives in the respective region. Platts will publish bids, offers and trades for Marine Fuel 0.5% derivatives from companies that are approved to participate in the corresponding fuel oil derivatives MOC in each region.
Platts launched physical Marine Fuel 0.5% cargo and barge assessments globally on January 2, 2019. The launch of these assessments came 12 months ahead of the planned introduction of a 0.5% sulfur limit in marine fuels by the International Maritime Organization from January 1, 2020.
Full details of Platts Marine Fuel 0.5% physical assessments are available in the following subscriber note: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/010919-subscriber-note-update-platts-launches-marine-fuel-05-sulfur-cargo-barge-assessments
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