Crude Oil Prices : Predicting Price Differentials Based on Quality
Many developing countries are becoming oil exporters, producing crude oils that often differ markedly in quality from those principally traded. Governments must predict the prices of such crudes, to forecast revenue and evaluate the fairness of the...
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| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2004/10/5496306/crude-oil-prices-predicting-price-differentials-based-quality http://hdl.handle.net/10986/11250 |
| Summary: | Many developing countries are becoming
oil exporters, producing crude oils that often differ
markedly in quality from those principally traded.
Governments must predict the prices of such crudes, to
forecast revenue and evaluate the fairness of the price they
receive from companies selling on their behalf. Oil
companies, and industry consultants, have models for
analyzing price differentials with well-known
"marker" crudes, but these models have not been
widely known, or adapted to account for increasingly
important quality characteristics, such as acidity. This
note explains a methodology for price analysis, and a new
extension for incorporating acidity, which can have a big
effect on the price differential. |
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