02AUG2019 - NEWS - Singapore Fuel Oil Bunker 380cst (Argus) Futures 

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.