Argus launches global index for crude oil delivery to refineries

Argus, a market intelligence and consultancy firm in the energy and commodity markets, has launched a new index that provides shippers with a benchmark of crude oil delivery costs to refineries across the globe.

The new index sheds light on the cost shippers must pay to deliver crude oil to refineries around the world, consolidating it into a single “dollars per barrel” metric that enables comparisons across routes and delivery points.

The index presents the data for the world’s 15 most important trade routes for a range of crude grades, including America’s West Texas Intermediate (WTI), Brazil’s Tupi, Russia’s Urals, Iraq’s Basrah Medium, Oman, Nigeria’s Qua Iboe, and Canada’s Access Western Blend (AWB).

Adrian Binks, chairman and chief executive of Argus, said that the launch of the index comes in response to a growing need for transparency as rates soar on the back of the Middle East conflict.

Tensions around Iran have affected critical shipping corridors such as the Strait of Hormuz, a chokepoint through which a large share of global oil and cargo flows each day. As a result, many carriers are rerouting vessels, introducing war-risk surcharges and facing higher insurance premiums. This has thrown the oil shipping landscape into turmoil and driven up volatility in the freight rates paid to charter the thousands of tankers carrying crude grades around the world.

“The Iran crisis has created a need for greater freight price transparency. We are pleased therefore to offer a global crude freight index which brings added transparency for our customers and to the market.”

Headquartered in London, Argus provides companies, trading firms and governments in over 100 countries with insights that supports their planning, operations and decision-making. The firm also has a consulting arm, which advises clients on strategic planning, policy and regulatory, market entry and due diligence around investments.

Founded in 1970, Argus has 1,500 staff working from 30 offices in the world’s main commodity trading hubs.