23-02-2019

Platts Marine Fuel 0.5% sees a surge in buying interest in MOC process

S&P Global Platts FOB Singapore Marine Fuel 0.5% cargo saw a surge in buying interest Friday.

Four companies bid for a combined 80,000 mt of the IMO 2020 compliant fuel in the Platts Market on Close assessment process Friday.

This is the most liquidity — with respect to participation — that the MOC process has so far seen for the product since Platts launched FOB Singapore Marine Fuel 0.5% assessment January 2, as part of its worldwide launch of pricing assessments for the low sulfur fuel ahead of next year’s new 0.5% limit on sulfur content.

Three of the four bids demonstrated value to be higher than where Platts had notionally pegged it before the start of the MOC process.

As of 0700 GMT, Platts published notional value for FOB Singapore Marine Fuel 0.5% cargoes for March 9-24 loading at a premium of $41/mt to the Mean of Platts Singapore 380 CST HSFO, which was pegged at about $421/mt, or at a flat price of $462/mt.

Hin Leong’s bid for 20,000 mt of FOB Singapore Marine Fuel 0.5% for March 9-13 loading at a premium of $45/mt to the March average of the MOPS 180 CST HSFO assessments, which was equivalent to a premium of $49.24/mt to MOPS 380 CST HSFO, was the best of the four bids.

Trafigura bid for a similar volume of product for March 20-24 loading at a premium of $45/mt to MOPS 380 CST HSFO, while Mercuria also bid for similar volume and for product loading over same dates at a premium of $40/mt to MOPS 180 CST HSFO — which was equivalent to a premium of $44.57/mt to MOPS 380 CST HSFO. Vitol’s bid for 20,000 mt of product for March 20-24 loading at a premium of $45/mt to MOPS 380 CST HSFO remained unchanged throughout the MOC process.

All bids expired at the end of the MOC process at 4:30 pm Singapore time (0830 GMT) and there were no trades reported.

Platts new assessments 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%.

The new assessments reflect existing parameters for volume, delivery period, size and pricing basis for HSFO cargoes in Singapore and Fujairah.
Source: Platts

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