• Registered: 04-08-2009
  • Posts: 7

Re: Oil Spot Price?!

The question remains: :]How is the spot oil price arrived at provided that spot oil is not traded at an exchange?!
It has nothing to do with speculations or futures contracts but rather a simple question that nobody seems to have answer to?!

  • Registered: 04-08-2009
  • Posts: 7

Re: Oil Spot Price?!

What has this to do with my question?
The question again:
Buyers and sellers of crude oil must interact somehow somewhere in order for the SPOT price (bid/offer) of crude oil to be arrived at. Where and how is that done?

  • Rory
  • New member
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  • Registered: 01-01-2010
  • Posts: 3

Re: Oil Spot Price?!

The price of petroleum as quoted in news generally refers to the spot price of either WTI/Light Crude as traded on the New York Mercantile Exchange (NYMEX) for delivery at Cushing, Oklahoma, or of Brent as traded on the Intercontinental Exchange (ICE, into which the International Petroleum Exchange has been incorporated) for delivery at Sullom Voe. The price of a barrel of oil is highly dependent on both its grade, determined by factors such as its specific gravity or API and its sulphur content, and its location. The vast majority of oil is not traded on an exchange but on an over-the-counter basis.[citation needed] Other important benchmarks include Dubai, Tapis, and the OPEC basket. The Energy Information Administration (EIA) uses the imported refiner acquisition cost, the weighted average cost of all oil imported into the US, as its "world oil price".

See: http://en.wikipedia.org/wiki/Price_of_petroleum