Singapore Exchange Limited (SGX) announced today that it will be launching a Fuel Oil Futures contract, to be traded on its derivatives platform, in the second half of 2009.
This contract will be based on Marine Fuel Oil 380-centistoke which is the bunker fuel oil supplied to ships and will be physically deliverable, Free-On-Board (FOB) Singapore oil terminals. The size of the contract will be 100 metric tonnes. Singapore being the world’s third largest oil trading hub and the world’s largest bunker port is an optimal location for an international oil futures market. SGX is well- positioned to help drive this development.
Elena Sng, senior vice president, Clearing and Commodities Business at SGX said, “The launch of the Fuel Oil Futures contract is timely and another step towards expanding our current suite of commodity products. The contract will offer market participants an efficient and transparent pricing mechanism in the Singapore fuel oil market. ”
Jacelyn Teo, deputy director of Offshore Trading Group, International Enterprise Singapore, the agency promoting international trading, added, “This fuel oil futures contract by SGX is an encouraging move that will help boost Singapore’s leading role as the Asian energy hub. We welcome such new products and initiatives which complement IE Singapore’s efforts to develop the commodity derivatives sector in Singapore."
