Platts to exclude Russian oil from Asia fuel oil, bunker assessments

Platts to exclude Russian oil from Asia fuel oil, bunker assessments

SINGAPORE, March 1 (Reuters) – Commodities pricing agency S&P Global Platts will be excluding Russian-origin material from its assessments of fuel oil cargoes and bunker fuel in Asia and the Middle East from March 1, the company said in a note to subscribers on Wednesday.

The decision came after an earlier consultation by Platts to review the merchantability of Russian material in Asian high-sulphur and low-sulphur fuel oil and bunker markets.

“The majority of feedback that Platts received suggested that Russian-origin material was no longer merchantable in the open-origin Asian fuel oil and bunker markets and supported its exclusion from the relevant Platts assessments,” the company said.

It added that the feedback ranged from concerns around a breach of previously announced international sanctions on Russia to potential implications for trading operations from the Feb. 5 G7 price caps on seaborne Russian petroleum products.

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All Asian fuel oil and bunker assessments will be subject to Platts origin standards with effect from March 1, the company said.

Under Platts origin standards, assessments that exclude Russian-origin material will reflect oil that is “not wholly, or in part, produced, manufactured or processed in Russia, or exported from Russia”.

Assessments also reflect transactions where the performing vessels are not Russian flagged or registered, or owned by Russian companies.

Reporting by Jeslyn Lerh; Editing by Christian Schmollinger

Our Standards: The Thomson Reuters Trust Principles.

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