Gaming Oil Price Benchmarks

There has got to be a better way to benchmark oil spot prices…

image

Key to the strategy is a peculiar aspect of the spot market for oil, where traders buy and sell bargeloads for immediate delivery. Deals are negotiated in private, and buyers and sellers aren’t required to disclose prices to anyone. To come up with a benchmark price, Platts has to rely on information volunteered by traders—a far cry from the way stocks or even oil futures are priced by crunching comprehensive data from public exchanges.

Source: WSJ

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: