S&P Global Platts proposes to launch new assessments in $/mt for US Gulf Coast and US Atlantic Coast marine fuel 0.5% sulfur with effect from July 1, 2019.
For the Platts Market on Close assessment process for marine fuel 0.5%S in the Americas, Platts proposes to only publish bids, offers and intents to trade for the fuel on a $/mt basis, also with effect from July 1, 2019.
The proposed changes will ensure that Platts physical assessments and processes more closely align with the end-user market for this fuel. Bunker fuel is typically traded and delivered in metric tons.
As suppliers prepare to meet the new global sulfur limit of 0.5% due to come into force in January 2020, Platts understands that the expected range of fuel densities will be significantly greater than for current marine fuels. Lower-density fuels traded in barrels would result in lower delivered quantity in mass.
Platts launched its $/b assessments for USGC and USAC marine fuel 0.5%S assessments on January 2, 2019, in tandem with similar assessments in Rotterdam, Fujairah and Singapore. All of the non-US assessments for marine fuel 0.5%S are published in $/mt.
Since January, Platts has been publishing bids, offers and intents to trade in the MOC process for USGC and USAC marine fuel 0.5%S on a $/b basis. These bids, offers and intents to trade in $/b would no longer be published with effect from July 1, 2019.
Platts will continue to publish the existing USGC and USAC assessments for marine fuel 0.5% on a $/b basis, and proposes to derive these assessments by converting the new $/mt assessments using the existing conversion rate of 6.35.
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