Low Sulfur Fuel oil Futures Contracts go Live

Tuesday February 19, 2019

A raft of marine fuel 0.5% futures contracts on the Intercontinental exchange (ICE) go live today.

The move comes amid the shift to 0.5% bunker fuel for global shipping from the start of next year which is expected to increase price volatility for marine fuel grades. The new futures contracts are a way for players to hedge their exposure on fuel.

Operating alongside ICE’s benchmark low sulphur gasoil, fuel oil and LNG markets, the contracts will provide customers "with a range of hedging tools to assist with the transition to the new regulations in 2020”, according to Jeff Barbuto, head of oil sales at the exchange.

The contracts, which will be settled against S&P Global Platts physical marine fuel 0.5% assessments, are as follows:

Fuel Oil Outright - Marine Fuel 0.5% FOB Rotterdam Barges (Platts) Future
Fuel Oil Outright - Marine Fuel 0.5% FOB Singapore (Platts) Future
Fuel Oil Diff - Marine Fuel 0.5% FOB Rotterdam Barges (Platts) vs 3.5% FOB Rotterdam Barges (Platts) Future
Fuel Oil Diff - Marine Fuel 0.5% FOB Singapore (Platts) Future vs 380 CST Singapore (Platts) Future
Fuel Oil Outright - Marine Fuel 0.5% FOB USGC Barges (Platts) Future
Fuel Oil Diff - Marine Fuel 0.5% FOB USGC Barges (Platts) vs USGC HSFO (Platts) Future