Argus Sour Crude Index

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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.

Market adoption[edit]

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]

External links[edit]

References[edit]

  1. ^ Argus Sour Crude Index - Methodology and specifications guide
  2. ^ Bloomberg - Saudi Aramco to Use Sour Oil Index as U.S. Benchmark, Drop WTI,[1]
  3. ^ Reuters - Kuwait to price U.S. oil cargoes on ASCI
  4. ^ Bloomberg - Iraq Will Use Argus Crude Price Formula From April
  5. ^ Reuters - Iraq to switch to ASCI from U.S. crude futures
  6. ^ Reuters - ICE to launch Argus sour crude futures contracts