LONDON, March 19, 2017 /PRNewswire/ -- Fujairah, the world's second-largest bunker and fuel oil trading hub, now has a new daily price assessment that reflects local and international market conditions. In recent years, Fujairah has built up a major storage and supply hub, increasing trade in marine fuel oil, or bunkers, and blending and aggregating fuel oil cargoes for sale to regional and international markets. Leading global commodity pricing agency Argus has launched the new price assessment based on the heavy fuel oil market as it trades in the region.
International attention on Fujairah as a major centre of trading activity has grown as its government has encouraged investment in storage and logistics facilities. Local trading activity has increased dramatically, and Argus has responded to demand from companies active in this market to provide a representative daily price assessment for barge-size cargoes. The Argus price assessment for Fujairah fuel oil reflects cargoes of 5,000-7,000t, RMG 380 grade (380 centistokes at 50°C, 3.5pc sulphur fuel oil), for loading 7-15 days after the date of assessment in Fujairah. This is the most actively traded grade in the region, spurring bids, offers and deals from various participants in the trading chain.
Argus calculates its price assessments using a volume-weighted average of deals done during the assessment period. In the absence of deals, Argus reviews a variety of information, including bids and offers and other market information. For Fujairah fuel oil, an important source of price information is provided through Argus Open Markets, an electronic price discovery platform where market participants can post bids and offers, and initiate trades.
Argus Media chairman and chief executive Adrian Binks said: "We have been working with the local and international trading and refining communities for some time to develop a robust, reliable and useful price assessment that can be used in physical contracts and to settle financial derivatives for risk management. The Mideast Gulf market has matured to the point that it needs an assessment for fuel oil that can represent regional market trends and move independently of activity in other global hubs. I would like to thank the many individuals and companies, and the Fujairah authorities who worked with us to help develop this new representative price assessment."
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About Argus Media
Argus is an independent media organisation with more than 800 staff. It is headquartered in London and has 21 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 staff 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, Argus publication titles and Argus index names are trademarks of Argus Media Limited.
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SOURCE Argus Media