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Intercontinental Exchange launches Marine Fuel 0.5% futures contracts

20 Feb 2019

Intercontinental Exchange, Inc. (ICE) on Tuesday (19 February) launched its new Marine Fuel 0.5% futures contracts in advance of the implementation of the 0.5% sulphur cap by the International Maritime Organization (IMO) in 2020.

ICE’s new futures contracts will settle against the S&P Global Platts physical Marine Fuel 0.5% assessments.

The IMO regulation limits sulphur emissions from shipping bunker fuel from January 2020, requiring ships to use fuel oil with a maximum sulphur content of 0.5% (mass/mass) outside designated emission control areas.

The new contracts 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

“We are launching these contracts in response to demand from our customers for Marine Fuel 0.5% specific derivative contracts,” said Jeff Barbuto, ICE’s Global Head of Oil Sales and Business Development.

“The contracts will allow participants around the world to manage changing shipping and refining economics, hedge forward, and restructure positions.

“The contracts will operate alongside ICE’s benchmark Low Sulphur Gasoil, fuel oil and LNG markets, providing customers with a range of hedging tools to assist with the transition to the new regulations in 2020.”

Published: 20 February, 2019
 

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