Pricing mode

Crude prices can be currently valid, or based on a set of data from a different point in time. The prices used in the Netback calculation are defined using the Pricing Mode. Selecting Current uses the most up-to-date set of data available. This may have been entered manually, or may be the current price feed from an automated service such as Platts.

By default crude prices used in the Netback calculation are based on the crude value for immediate delivery. By changing the Month drop-down it is possible to use prices for delivery in one or two months. When changing the Month used for pricing the pricing grid will automatically update with the valid prices. If no contract information was available for that crude the entry will be left blank, and a custom price should be entered. For example, if today is the 18 Jun 2013, when month is set to 0 the price for immediate delivery is shown. Changing the Month to 1 means that today's prices for crude delivery in one month will be shown.

Selecting Historical allows prices from a different point in time to be used. Selecting the Historical radio button allows the Pricing Date to be set by using the Pricing Date calendar control. The prices for the crudes on this day will be used in the Netback calculation. When using Historical pricing it is possible to use different contract pricing in the Netback calculation based on the month of delivery. Select the required month for delivery using the Month drop-down. The price of crude for delivery in that month will be used in the Netback calculation. For example, if I choose 14 Feb 2010 as the Historical price day, and set Month to 0, then the price for immediate delivery on the 14 Feb 2010 will be used in the calculation. If I choose 14 Feb 2010 as the Historical price day, and set Month to 2, then prices on the 14 Feb 2010 will be used, but the contract price for delivery in 2 months which were available that day.

When using Custom pricing if you enter prices for a historical date these are saved along with the Netback for case. For example, if I enter the historical date of 14 Feb 2010 and enter the price for Arab Light that day, then this price will be saved along with the Netback Case. When results are generated for the Timewise Graph the will use this historical custom pricing.