World News
APEX LSFO Futures Contract Available in Singapore
A futures contract to hedge price volatility in the emerging low sulfur fuel oil market is available from the Singapore-based Asia-Pacific Exchange.
The contract is based on Argus Media published prices for the low sulfur fuel. It will be a cash-settled, US dollar-denominated LSFO futures contract for 10 metric tonnes of fuel oil, and will use the Argus Bunker Index Singapore LSFO 0.5% as the settlement price, according to Reuters.
"Risk management demand for delivered bunker LSFO prices has become more significant due to factors such as the uncertainty in LSFO specifications, and the disconnection between cargo and delivered prices," a spokesman for the exchange was quoted as saying by Reuters.
The futures contract is one of a number available in the market. These initiatives have come ahead of a predicted period of price volatility following the introduction of the global bunker fuel standard of 0.5% sulfur.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 556.00 | 9.50 | 674.00 | 4.50 |
| Rotterdam | 507.00 | 5.00 | 663.50 | 12.50 |
| Houston | 549.50 | 2.50 | 677.00 | 5.00 |
| Fujairah | 548.50 | 7.00 | 748.50 | 4.50 |
| Global 20 Ports Average | 580.00 | 3.50 | 761.00 | 1.50 |
| Global 4 Ports Average | 540.00 | 6.50 | 691.00 | 6.50 |
| Global Average Bunker Price | 625.50 | 7.00 | 809.50 | 1.50 |
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