Platts will launch a new assessment for low sulfur heating oil barges in New York Harbor with a maximum sulfur content of 500 ppm on October 3, 2016.
The proposed assessment reflects growing trade in lower sulfur heating oil now that all but two states in the US Northeast are transitioning to lower sulfur heating oil by the end of 2016.
The new assessment will be published as an outright price in cents/gal, and reflect barges loading on an FOB basis 3-7 days forward from Monday through Wednesday, and 5-9 days forward on Thursday and Friday. This matches the existing delivery period of the Platts New York Harbor barge assessments of Gasoil No. 2 (2,000 ppm sulfur heating oil), ultra low sulfur heating oil maximum 15 ppm sulfur) and ULSD.
The new assessment will reflect the value of barge clip sizes of a minimum 25,000 barrels, and maximum 100,000 barrels.
Other specifications for the 500 ppm low sulfur heating oil assessment will be similar to Colonial Pipeline’s 75 grade for LSHO at the delivery point of Linden, New Jersey.
Data Sources: Platts | Effective Date: October 03, 2016