Singapore Fuel Oil Bunker 380cst (Argus) Futures to be listed on CME from 26 Aug

Global energy and commodity price reporting agency Argus Media on Thursday (1 August) said it will be launching the world’s first listed delivered bunker fuel derivatives contract on the CME from 26 August, 2019 onwards.

The Singapore Fuel Oil Bunker 380cst (Argus) Futures with contract code ABF will settle on the monthly average of Argus high-sulphur fuel oil (HSFO) 3.5pc delivered bunker assessments.

“Bunker premiums in Singapore have become increasingly volatile and are expected to remain so because of the IMO2020 implementation of a global cap on sulphur in marine fuels,” states Argus.

“This new derivative product can help manage the risk of disconnection between cargo and delivered bunker markets.”

According to Argus, the bunker assessments reflect the cost of marine fuel delivered to vessels in line with the needs of the maritime industry.

For Singapore these are based on a volume-weighted average of reported deals up to 7pm. A total of 2,395 deals were reported by market participants into the Singapore assessment process during the first half of 2019, an average of 20 each day.

This assessment reflects the price paid for HSFO stems between 500t and 3,000t delivered to ship 4-12 days from the trade date.

For further details of the derivatives contract please refer to the CME announcement here.

For further details on the assessment please contact [email protected] or click here to view the Argus Marine Fuels methodology.

Published: 2 August, 2019