Argus Sour Crude Index
THe Argus Sour Crude Index (ASCI) is a pricing tool used by buyers, sellers and traders of imported crude oil for use in long-term contracts.
The ASCI methodology[1] creates a single daily volume-weighted average price index of aggregate deals done for three component crude grades as if they were one grade of crude oil.
The three crude oil grade components are; Mars, Poseidon and Southern Green Canyon.
Thus the daily ASCI price published by Argus Media Ltd represents the value of US Gulf coast medium sour crude oil.
[edit] Market adoption
The Argus Sour Crude Index (“ASCI”) has been adopted as the benchmark price for sales of crude oil by Saudi Aramco (in 2009)[2], Kuwait (in 2009)[3] and Iraq (in 2010)[4][5].
Contracts based upon ASCI are listed on the world's two largest oil exchanges, the CME Group New York Mercantile Exchange (NYMEX) and the IntercontinentalExchange (ICE).[6]
[edit] External links
[edit] References
- ^ Argus Sour Crude Index - Methodology and specifications guide
- ^ Bloomberg - Saudi Aramco to Use Sour Oil Index as U.S. Benchmark, Drop WTI,[1]
- ^ Reuters - Kuwait to price U.S. oil cargoes on ASCI
- ^ Bloomberg - Iraq Will Use Argus Crude Price Formula From April
- ^ Reuters - Iraq to switch to ASCI from U.S. crude futures
- ^ Reuters - ICE to launch Argus sour crude futures contracts
