Platts suspends Asian assessments on 1 Sept for Singapore elections

Quantum Commodity Intelligence – Platts, part of S&P Global Commodity Insights, said in a market note Tuesday that it will not publish Asian price assessments on Friday 1 September, after the Singapore government announced a public holiday for the country's presidential elections.

However, the note added that there will not be an early Market-on-Close assessment process on 31 August, as is usually the case preceding a Singapore holiday.

In addition to energy markets, Platts said it would suspend assessments across the commodities complex, including petrochemicals, shipping, coal and agriculture.  

Sources said the additional Singapore public holiday would cause a small disruption for energy markets, with one less day in September for pricing swaps, while physical markets will skip one pricing day.

Physical oil cargoes typically price five days around the BL (Bill of Lading) date, known as 2-1-2 pricing, so cargoes due to have a pricing element on Friday will either advance or defer pricing for that day.

Physical oil also prices on a monthly average, particularly for term cargoes, so there will be one less pricing day to factor in for hedging requirements.

Oil contracts traded on ICE and CME will not be impacted, allowing for the clearing of over-the-counter block transactions, while Singapore-based brokers are likely to keep a skeleton staff on that day to post block trades on behalf of clients.  

Asian benchmark derivatives, including Dubai crude, 10ppm gasoil, 92 RON gasoline and 380 CST fuel oil, can still trade without Platts physical assessments, but liquidity is likely to be thin.

Last year, Platts had to declare a short-notice holiday on European markets for a UK public holiday to mark the funeral of Queen Elizabeth II.

Quantum Commodity Intelligence will also suspend Asian assessments for 1 September.