Argus Media launches new Middle East gas assessment
Argus Media, a price assessment agency, will create a new Middle East benchmark for gasoline in part because of the rising production and trading in this region. This was announced at its oil conference in London on Tuesday.
Anu Agarwal, vice president of business development at Argus and custodian for the Eurobob gasoline benchmark widely traded in Europe, said that the company will be launching a new MEBOB Middle East gas assessment in the next few weeks or months.
Agarwal stated that the region has changed in recent years and is now much more dynamic when it comes to gasoline trading.
She said that the national oil companies were no longer just refiners selling products. They are now becoming sophisticated traders.
Argus, citing Kpler, said that Middle Eastern and Indian gas exports will reach nearly 1 million barrels a day by 2024 - approximately 36% of the total Asian loadings.
The current benchmark for gasoline in the Middle East was based on a freight-netback from Singapore pricing.
Agarwal stated that alternative pricing is required as Singapore netback pricing leaves traders more vulnerable to increased volatility on freight markets. Singapore accounts for less than 10% Middle East gasoline exports.
MEBOB will reflect the value of 92 Ron oxygenated gasoline in parcels of 300,000 barrels. This is assessed on a daily basis, free-onboard Middle East.
(source: Reuters)
