Asia/Pacific News
Argus: New Price Assessment Asked for by Industry
Price reporting agency Argus Media, which launches its 0.5% sulfur fuel oil assessment for Singapore from the start of next week, has said the move is in response to industry requests for "an independent price for IMO2020-compliant product for use in forward physical and derivative contracts".
The assessment, which will be place way ahead of the January 1, 2020 deadline for the new sulfur content rule, will be based on marine gasoil 0.1% sulfur and high sulfur 380 cSt in a seven to one ratio.
This calculation represents "the value of 180cst, 0.5% sulphur fuel oil for delivery 4-12 days from the day of trade and a delivery size of 500-3,000t", the agency said.
In addition, Argus said that it will watch how traded markets in IMO2020-compliant fuel develop "with the intention of providing price assessments based on trades, bids, offers and other relevant market information".
From January 1, 2020, the global sulfur cap on bunker fuel falls from 3.5% to 0.5%.
