Crude Oil
Another word for the absolute, or final price.
What is the Flat Price?
A measure of how heavy or light a crude oil is compared to water.
What is the API degree?
Price levels at which market participants are cutting their loss- Market movements are usually exacerbated on these levels.
What are stops?
This UN treaty, signed in 1982, defines the rights and responsibilities of nations with respect to their use of the world's oceans.
What is UNCLOS (United Nations Convention on the Law of the Sea)?
Everyone says oil prices are up because of "geopolitical risk," but this term actually refers to the extra cost markets add when they think future supply could be disrupted.
What is a risk premium?
A market reference used to facilitate the pricing of related commodities
What is a Benchmark?
A crude oil with high sulfur content, harder to refine.
What is Sour Crude?
All type of transactions or instruments used to mitigate the impact of price movements.
What is hedging?
Under MARPOL, this type of regulation governs the discharge of oil, sewage, and garbage from ships, protecting the marine environment.
What is maritime pollution prevention / MARPOL Annex regulations?
People love posting charts comparing this benchmark to WTI as if everyone knows why the spread matters.
What is Brent?
Price Reporting Agencies (PRA)
Platts, Argus and other famous names in the Baltic Exchange
Small, independent, privately-owned oil refineries which make up roughly a quarter of China's total oil processing capacity.
What are Teapots?
They are all kind of derivatives instruments, financial non physical instruments.
What is paper trading?
This mandatory vessel tracking system broadcasts a ship's position, speed, and heading to other vessels and coastal authorities — but can be deliberately switched off to conceal movement.
What is the Automated Identification System (AIS)?
This phrase gets thrown around whenever someone wants to sound smart about energy markets, even though most people couldn't explain how it actually affects fuel prices.
What is Benchmark?
The short period of time within the day during which PRAs are assessing prices
What is a Window?
The price difference between jet fuel and gasoil (diesel).
What is Regrade?
A repurchase agreement, selling and agreeing to buy back
What is a Repo?
Ships transiting the Strait of Hormuz or Strait of Malacca rely on this right of passage, guaranteed under UNCLOS, which cannot be suspended even by the bordering state.
What is transit passage through an international strait?
LinkedIn experts often claim a conflict will immediately cause shortages, but markets usually react first to this, the belief about what might happen before physical supply changes.
What are expectations?
The standard incoterm term for lifting products in a port with free destination.
What is FOB
A vessel sailing without cargo, usually to reposition or avoid demurrage
Ballast/Go Ballast
It is a measure of the market fever. (extracted from option pricing)
Implied volatility
In a contested region, a tanker's GPS begins showing it in the middle of an airport. This electronic attack technique — used to feed false coordinates to navigation systems — is called what?
What is GPS spoofing (or GNSS spoofing)?
Everyone says oil prices are up because of "geopolitical risk," but this term actually refers to the extra cost markets add when they think future supply could be disrupted.
What is a risk premium?