Benchmarks

Freight cost can be entered directly, or can instead be entered relative to the freight price of a Benchmark crude. If no Benchmark is set, then the value entered is subtracted directly when calculating the margin. If a Benchmark is set, a difference is added/subtracted to the freight cost of the Benchmark crude before this value subtracted to calculate the margin.

For example, if Arab Light was set as a benchmark with a freight cost of $4, and Iran Heavy was set as a differential of +1, then during the margin calculation $5 would be subtracted for the freight cost of Iran Heavy. At a later date if the cost of shipping of Arab Light increased to $6, then the cost of shipping Iran Heavy would automatically increase to $7.

On the Crude Freight page select the crudes you wish to include in the freight price list in the Traded Crude column. To add a new crude to the list:

1. Click the icon to add a new row to the list

2. Double-click the Traded Crude cell in the new row and select the traded crude from the list of available crudes

3. Select the Benchmark crude from the crude list if the freight price is relative to a Benchmark value

4. Enter the price of the freight in the Value column

5. Enter the pricing unit in the Unit column

The Product Specifications grid supports copy and paste from other software applications such as Microsoft Excel.