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.”