1, the basic method of crude oil pricing:
The pricing of crude oil trade (especially long-term contract trade) is mostly based on formulas, and it is generally necessary to determine the benchmark oil, benchmark price and discount. The basic formula is as follows:
The settlement price of crude oil A is P=A+D, where A is the benchmark price and D is the discount.
Some crude oils use the quotation of this crude oil in a quotation system, which is used as the benchmark price after formula processing; Because there is no quotation, some crude oil has to be linked to the quotation of other crude oil.
2. Determination of benchmark price:
(1). Pricing related to the futures market: The futures market has replaced the price discovery function of the spot market to a certain extent and become the leading indicator of the price change of crude oil. Most crude oil trade in the world is priced with reference to the futures market price at the time of delivery. At present, the benchmark price of global crude oil trade mainly refers to the WYI crude oil futures price of NYMEX and the Brent crude oil futures price of IPE.
(2) Pricing related to the spot market: There are two prices in the oil spot market. One is the actual spot transaction price; The other is the evaluation of some market price levels made by some institutions through market research and tracking. Generally, one or more reference crude oil prices are selected as the basis, plus a premium. Among them, the price of reference oil is not the specific transaction price of a crude oil at a specific time, but the price of a crude oil estimated by one or several quotation agencies, which is usually called the oil price index in the market.
Quotation systems and price indexes reflecting spot market prices include Platts, Argos Petroleum Argus, Reuters Reuters, Associated Press Telerate, Asian oil price index APPI, Indonesian crude oil price index ICP, Far East oil price index FEOP and Ramu RIM. Spot prices of crude oil are often quoted FOB, and some oils are quoted CIF.
(3) Pricing linked to various official prices (package prices): Middle East oil-producing countries have two pricing methods for exporting oil: one is pricing linked to export destination benchmark oil. The other is that exporting countries publish their own price index, which is called "official selling price index" ("official price" OSP) in the oil industry. MPM crude oil price index published by Oman Ministry of Petroleum and Minerals, QGPC price index published by Qatar National Oil Company and ADNOC price index published by Abu Dhabi National Oil Company.
3. Refer to oil product selection: 1, Europe-Brent crude oil pricing (spot and forward). 2. North America-WTI West Texas Intermediate Oil Company. 3. Middle East-Brent (exported to Europe), WTI (exported to North America), Oman and Dubai crude oil (exported to Asia Pacific). 4. Asia-Pacific-based on the Indonesian crude oil price index or the Asian oil price index of a certain crude oil in Indonesia, plus or minus the adjustment price; The other is the Asian oil price index of Malaysian Tapitz crude oil.