Posts by Aastha

Platts has launched its assessment for sour crude as Americas Crude Marker (ACM). It will be published on a daily basis. The trading month rollover for ACM will take place on the first business day after the 25th of each calendar month.

"The initial response by industry to the ACM has been very favorable," said Dan Tanz, vice president editorial, Platts. "Producers and consumers have been seeking better indicators of crude oil value in the Americas. We are pleased to offer the market what we believe will be a valuable new reference price that captures the breadth of activity in the Americas' crude oil trading center.

Platts, a leading global provider of energy and commodities information has proposed the launch of a new benchmark, Americas Sour Marker (ASM) for sour crude oil in the U.S. Gulf of Mexico. Sour crude oil contains high-sulfur as opposed to sweet crude oil which has a lesser sulphur content. Sour crude accounts for close to two-thirds of the oil that goes into U.S. refineries for the production of various oil products.

- This is to provide an alternate benchmark to West Texas Intermediate (WTI) which gives the value for Sweet crude oil.
- The ASM assessment would reflect the four U.S. Gulf Coast pipeline crudes: Mars, Poseidon, Southern Green Canyon, and Thunder Horse.
- Platts is proposing to launch the new assessment on March 16, 2009.
- ASM would follow the Platts Brent-Forties-Oseberg-Ekofisk (BFOE) assessment model used in the North Sea.
- It will be published with Platts' existing U.S. sweet and sour crude assessments and will not replace any existing U.S. crude assessments.

Oil prices have slid to a 7- month low. Bloomberg reports "Crude oil for October delivery fell as much as $4.17, or 4.4 percent, to $91.54 a barrel, the lowest intraday price since Feb. 11."

The main cause for this slide seems to be the bankruptcy protection sought by the Lehman Brothers Holdings Inc, once the fourth largest investment bank in America. The fear is that the current credit crisis will affect the economy and cut the demand for oil.

Analysts say that the Oil prices may continue to fall before they are stabilised. Will OPEC make good its threat to cut the Oil output, now that the Oil prices are below $100 or will the prices plunging below $90 be the relief that the consumers are waiting for.

The OPEC has succeeded in its attempt to keep the Oil prices above $100 by reducing the oil output. A statement released after the OPEC meeting states that the OPEC OIl ministers have decided to trim the overall output by more than 500,000 barrels a day, and the current output is fixed at 28.8 million barrels a day.

Oil prices had lost more ground Tuesday ahead of the OPEC decision, falling $3.08 to settle at $103.26 on the Nymex, the lowest settlement price since April 1. But after OPEC released its statement, Light, sweet crude for October delivery rose $1.00 to $104.26 a barrel in the New Yourk Mercentile Exchange.