S&P Global Platts proposes to begin publishing daily assessments for CIF and FOB Mediterranean marine fuel cargoes, with a maximum of 0.5% sulfur, effective November 1, 2019.
SPECIFICATION: The assessments would reflect specifications for RMG fuels as defined by the International Organization for Standardization in document ISO 8217:2010 Petroleum products - Fuels (class F) - Specifications of marine fuels, but with a sulfur cap of 0.5%.
Any 0.5% sulfur marine fuel cargo delivered as a result of a transaction completed and reported during the Platts Market on Close assessment process should be merchantable. Platts' assessments of this grade in all locations reflect material that could be sold into bunker markets.
Platts does not reflect 0.5% sulfur marine fuel cargoes in its assessment process where the fuel is demonstrably unacceptable to bunker buyers.
Barrels traded within the MOC process should not be unreasonably rejected by an entity, and any rejection based on quality is subject to Platts review.
TIMING AND SIZE: The assessment would reflect the value of cargoes of 25,000 mt to 30,000 mt, delivered CIF basis Genoa, with normal charterparty options.
The assessment would reflect material for delivery 10-25 days from date of publication, with value normalized to reflect the mean value of the delivery period.
PORTS: Platts proposes to publish bids and offers on a CIF basis into the following locations: Algeciras, Barcelona, Ceuta, Genoa, Gibraltar, Malta and Tangier Med.
PRICING BASES: Platts proposes to publish bids and offers on an outright price basis, and versus: 0.5% CIF Mediterranean marine fuel cargoes, 0.5% FOB Rotterdam marine fuel barges, 3.5% FOB Rotterdam barges, 3.5% CIF Mediterranean cargoes, 3.5% FOB Mediterranean cargoes and as an exchange for physical relative to ICE low sulfur gasoil.
FOB MEDITERRANEAN ASSESSMENT: This assessment would be established using a freight differential to the CIF Mediterranean assessment, using a flat rate based on a basket of typical tanker routes, multiplied by the daily Worldscale assessment for the 30,000 mt Cross-Mediterranean route assessed in Platts Dirty Tankerwire.
The assessment would reflect the value of cargoes of typically 25,000 mt to 30,000 mt, loading FOB Mediterranean. Platts does not initially propose to publish bids and offers on an FOB basis.
Please send any comments or questions by October 10, 2019 to firstname.lastname@example.org and email@example.com
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.