Le Lézard
Classified in: Business
Subjects: ECO, ASI

Trades seen on first day of APEX Argus Bunker Index Singapore LSFO futures market


SINGAPORE, Oct. 21, 2019 /PRNewswire/ -- The Asia Pacific Exchange (APEX) launched the APEX Argus Bunker Index Singapore LSFO 0.5%S futures contract on Friday 18 October. This contract provides a tool for market participants to hedge price risks associated with marine fuel. The contract complies with tighter sulphur specifications being introduced by the International Maritime Organisation in 2020. A total of 120 lots traded on the opening day on the December, January and February contracts, with prices closing at $539.10/t, $543.50/t and $537.40/t, respectively.

Argus Media Logo (PRNewsfoto/Argus Media)

APEX Argus Bunker Index Singapore LSFO 0.5%S futures have been launched to coincide with new IMO rules taking effect in January 2020, where ships without exhaust scrubbers are required to use fuel with a sulphur content of a maximum of 0.5%, a reduction from the current 3.5%. Marine fuels industry and shipping companies face a huge challenge in managing risk associated with the price of this new fuel. This new contract is the first derivative worldwide to provide a delivered bunker price hedging tool for 0.5% sulphur fuel.

The new contract provides market participants such as shipowners that have future requirements and suppliers holding fuel inventory with an instrument for hedging. In addition, it may create opportunities for spread trading across crude and other refined oil product markets, as well as inter-month trading. The contract is cash settled against the monthly average of Argus' daily assessments of LSFO 0.5%S bunker fuel delivered between 4 and 12 days from the trade date, for volumes between 500t and 3,000t, with viscosity of less than 380cst and less than 0.5% sulphur. Argus removes price outliers using statistical analysis prior to calculating a volume-weighted average of the trades reported by 7pm to provide an average price traded for the fuel that day in Singapore.

"Argus is pleased to see a successful first day of trading on the APEX contract and we hope it will prove to be a useful hedging instrument for market participants," Argus Media chairman and chief executive Adrian Binks said. "Argus' delivered bunker price assessments for Singapore have gained the confidence of the marine fuel community as reliable, independent price assessments since being launched in June 2018.  Argus will continue to provide reliable marine fuel assessments including low and high-sulphur fuel oil and low-sulphur marine gasoil in Singapore and elsewhere, including the Zhoushan Bunker Indexes (ZBIs) launched earlier this year."

Argus bunker fuel assessments are available in the Argus Marine Fuels report. More information, including the price assessment methodology, is available online https://www.argusmedia.com/en/oil-products/argus-marine-fuels. Further information about the new APEX bunker fuel futures contract is available here. https://www.asiapacificex.com/Product-Introduction/1299.html>.

About Argus Media

Argus is an independent media organisation with 1,000 staff. It is headquartered in London and has 23 offices in the world's principal commodity trading and production centres. Argus produces price assessments and analysis of international energy and other commodity markets, and offers bespoke consulting services and industry-leading conferences.

Companies in 140 countries around the world use Argus data to index physical trade and as benchmarks in financial derivative markets as well as for analysis and planning purposes.

Argus was founded in 1970 and is a privately held UK-registered company. It is owned by employee shareholders and global growth equity firm General Atlantic.

ARGUS, the ARGUS logo, ARGUS MEDIA, ARGUS DIRECT, ARGUS OPEN MARKETS, AOM, FMB, DEWITT, JIM JORDAN & ASSOCIATES, JJ&A, FUNDALYTICS, METAL-PAGES, METALPRICES.COM, INTEGER, Argus publication titles and Argus index names are trademarks of Argus Media Limited.

Argus Media

London: Seana Lanigan
+44 20 7780 4200
seana.lanigan@argusmedia.com

Singapore: Tomoko Hashimoto
+65 6496 9960
tomoko.hashimoto@argusmedia.com

 

SOURCE Argus Media


These press releases may also interest you

at 19:10
Charah® Solutions, Inc. ("Charah Solutions" or the "Company"), a leading provider of environmental and maintenance services to the power generation industry, has made available to the Company's security holders an earning statement covering a period...

at 19:05
Charah® Solutions, Inc. ("Charah Solutions" or the "Company"), a leading provider of environmental and maintenance services to the power generation industry, today announced financial results for the three and nine months ended September 30, 2019....

at 19:00
COMPASS COMMERCIAL today announced that its industrial brokerage division negotiated a 39,000 square foot lease on behalf of Idea Ceramica USA, Inc. at a facility in the heart of Medley, FL, a prime distribution hub in Northwestern Miami-Dade County....

at 19:00
PeopleStrong, Asia's leading Enterprise Work and HR Tech brand, has appointed former Aon Hewitt CEO Sandeep Chaudhary as President and member of the board. This appointment comes as a part of PeopleStrong's continuing effort to invest and drive...

at 19:00
INNOPIA Technologies, Inc, a Pay TV STB (Set Top Box) ODM specialized in STB software development including online entertainment service, has been selected as the first Korean ODM partner of Netflix for Hailstorm Hybrid program based on Android TV...

at 19:00
Imagion Biosystems Limited , a company dedicated to improving healthcare through the earlier detection of cancer, has been issued patent #320872 from the Government of India Patent Office for the Company's core intellectual property related to...



News published on 21 october 2019 at 00:01 and distributed by: