Intercontinental Exchange Announces Launch of Marine Fuel Contracts in Advance of IMO 2020

Intercontinental Exchange Announces Launch of Marine Fuel Contracts in Advance of IMO 2020

Intercontinental Exchange Announces Launch of Marine Fuel Contracts in Advance of IMO 2020

The FINANCIAL -- Intercontinental Exchange, Inc., one of the leading operators of global exchanges and clearing houses and provider of data and listings services, announced plans to launch new Marine Fuel 0.5% futures contracts in advance of the implementation of the 0.5% sulphur cap by the International Maritime Organization (IMO) in 2020.

ICE’s new futures contracts will settle against S&P Global Platts physical marine fuel 0.5% assessments. The contracts are as follows:

Fuel Oil Outright - Marine Fuel 0.5% FOB Rotterdam Barges (Platts) Future

Fuel Oil Outright - Marine Fuel 0.5% FOB Singapore (Platts) Future

Fuel Oil Diff - Marine Fuel 0.5% FOB Rotterdam Barges (Platts) vs 3.5% FOB Rotterdam Barges (Platts) Future

Fuel Oil Diff - Marine Fuel 0.5% FOB Singapore (Platts) Future vs 380 CST Singapore (Platts) Future

Fuel Oil Outright - Marine Fuel 0.5% FOB USGC Barges (Platts) Future

Fuel Oil Diff - Marine Fuel 0.5% FOB USGC Barges (Platts) vs USGC HSFO (Platts) Future

The new contracts have been developed in response to significant market demand in advance of the IMO regulation limiting sulphur emissions from shipping bunker fuel from January 2020. The new regulation requires that ships will only be able to use fuel oil with a maximum sulphur content of 0.5% (mass/mass) outside designated emission control areas.

ICE Low Sulphur Gasoil is the key refined oil benchmark in Europe and Asia. Gasoil futures and options grew 11% in the period January to November 2018 versus the same period in 2017. The contract has become the go-to price marker for the middle part of the refined barrel and the world’s leading middle distillate benchmark for the oil market.

ICE Low Sulphur Gasoil is an important and efficient hedging and trading mechanism, providing market participants with access to a range of products in a single contract and plays the same role for middle distillate oil that ICE Brent Crude plays for the crude oil market.