Price assessments from companies like Platts are used as the basis for some oil trades. File Image / Pixabay
The pricing basis for very low sulfur fuel oil (VLSFO) trades is starting to shift away from 10ppm diesel cargoes in Asia, according to price reporting agency S&P Global Platts.
There has been a 'gradual but steady shift' towards using Platts 0.50% sulfur fuel assessments instead of diesel cargo prices in these trades, the company said Tuesday.
Assessments from price reporting agencies are sometimes used as the basis of marine fuel trades, with transactions priced at a differential to them.
Platts high sulfur fuel oil assessments in Singapore were traditionally one of the main reference points for the marine fuels industry, and increased reliance on their 0.50% sulfur fuel assessments is a sign of the VLSFO market starting to settle and mature.