SINGAPORE, June 30, 2015 /PRNewswire/ -- Platts, a leading
global energy, petrochemicals and metals information provider and a
premier source of benchmark price references, today introduced the
Free-On-Board Straits (FOB Straits) process in its price
assessments for refined oil products.
The FOB Straits process is an update to price discovery
methodology that forms the basis of the Platts FOB Singapore
benchmarks for fuel oil, gasoil, jet fuel and gasoline. As part of
its price assessment process, Platts publishes bids, offers and
transactions, as determined by buyers and sellers in the open
market, for loadpoints in Singapore and four ports in Johor, Malaysia.
This introduction of the FOB Straits process is the result of
continued Platts consultations with the market and industry. A
formal proposal was announced July 17,
2014, and the decision to change the methodology was
announced on December 22, 2014. The
evolution of the FOB Singapore assessments reflects the significant
growth in the Singapore refined
oil products markets over the last several years.
"Platts believes that benchmark price assessments must evolve
with the marketplace, and for this reason, Platts regularly reviews
with the marketplace and industry its offering of price assessments
and the methodology and specifications underpinning those
assessments," said Jonty Rushforth, Platts editorial director
of Asia and Middle East oil markets.
The limited possibility of further expansion of Singapore's on-land oil storage, coupled with
growth in nearby Johor and the
Riau Islands, means trading of products – and the benchmarks that
reflect that activity – have spilled beyond Singapore's traditional boundaries and into
new frontiers. The associated spot markets now regularly include
trades for commodities loading close to, but beyond the geographic
borders of, Singapore. These ports
include southern Malaysia oil
terminals: Pasir Gudang, Tanjung Langsat and Pengerang Terminal to
the north east of Singapore, and
Tanjung Bin, to the west of the city-state.
Under the revised approach, Platts will only publish bids and
offers and transactions as FOB Straits, and no longer publish FOB
Singapore or FOB Malaysia bids, offers or transactions in its
Market-on-Close (MOC) assessment process. However, Platts will
continue to reference these assessments in all publications under
the current "FOB Singapore" nomenclature.
More details about FOB Straits and MOC:
FOB Straits Explained: http://plts.co/OYiT7
FAQ on FOB Straits (pdf): http://plts.co/OYj00
Whitepaper on FOB Straits (pdf): http://plts.co/OYj3h
Asia refined oil products
assessment methodology (pdf): http://plts.co/OYj5F
MOC assessment process: http://plts.co/OYj7d
About Platts: Founded in 1909, Platts is a leading global
provider of energy, petrochemicals, metals and agriculture
information and a premier source of benchmark prices for the
physical and futures markets. Platts' news, pricing, analytics,
commentary and conferences help customers make better-informed
trading and business decisions and help the markets operate with
greater transparency and efficiency. Customers in more than 150
countries benefit from Platts' coverage of the biofuels, carbon
emissions, coal, electricity, oil, natural gas, metals, nuclear
power, petrochemical, shipping and sugar markets. A division of
McGraw Hill Financial, Platts is based in London with more than 1000 employees in more
than 15 offices worldwide. Additional information is available at
www.platts.com.
About McGraw Hill Financial: McGraw Hill Financial (NYSE:
MHFI), a financial intelligence company, is a leader in credit
ratings, benchmarks and analytics for the global capital and
commodity markets. Iconic brands include: Standard & Poor's
Ratings Services, S&P Capital IQ, S&P Dow Jones Indices,
Platts, CRISIL, and J.D. Power. The Company has approximately
18,000 employees in 30 countries. Additional information is
available at www.mhfi.com.
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SOURCE Platts