Platts, the publisher of data used to price everything from Singapore fuel oil cargoes to Asian crude oil purchases, plans to use a gasoil grade with lower sulfur content as the benchmark for Asia from next year.
The company will change its benchmark to the grade containing 500 parts per million of sulfur from Jan. 2, 2013, replacing gasoil with 5,000 parts per million used currently, the company said in an e-mailed statement. The unit of McGraw- Hill Cos. (MHP:US) recommends that market participants use a one-time differential of $1.70 a barrel to amend price contracts when the change takes place, it said.
“The lower sulfur specifications reflect changing supply and demand trends across the regions,” the company said. “We will no longer publish any value for gasoil containing 5,000 parts per million of sulfur in Asia after that date.”
Platts told a forum of traders in London on Feb. 20 that it was considering the assessment change to Singapore gasoil. Companies and exchanges such as CME Group Inc. (CME:US) are also amending sulfur specifications in fuel contracts from 2013 to meet changes in environmental regulations.
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