Asia/Pacific News
Singapore: Futures Exchange to use Argus 0.5% Prices
Argus Media's 0.5% sulfur fuel oil price assessments have been selected by a Singapore-based derivatives exchange as the settlement price for a new derivatives contract.
Although the two companies, Argus Media and Asia Pacific Exchange (APEX), have signed a licencing agreement, a start date for the new futures contract has yet to be confirmed.
Argus, which has been publishing 0.5% sulfur bunker fuel price assessments since last year, is looking to move away from a cargo price-based assessment to one based on the delivered price of bunker fuel.
Market observers predict increased price volatility over the short- to medium-term as the bunker market reacts to the impact of the 0.5% sulfur cap on marine fuel in place from the start of next year.
In addition to APEX, the southeast Asian city state has two other derivatives exchanges.
