FMCL’s methodology involves averaging the assessments of the region’s leading brokers to provide an assessment of the most actively traded swaps grades and time periods. The data for FMC’s Asia oil module is collected from participating member offices in Singapore, Tokyo and London. Brokers electronically input their assessment of the grades they actively cover in the market. These inputs are then averaged and displayed as daily forward market curves for each grade.
The grades include, but are not limited to: crude oil swaps, such as WTI swaps and Tapis swaps; other crude oil grades, such as Brent futures; and refined products swaps, such as Singapore Naphtha swaps and Singapore jet kero swaps.
To ensure a middle view of the market, high and low broker assessments are discarded before averaging.
The founding members of FMCL include the top 10 oil brokerage houses in Asia-related swaps, including Amerex Petroleum Singapore, Aspen Oil (Broking), Ginga Petroleum, Intercapital Commodity Swaps, Prebon Energy (Singapore), PVM Oil Associates, Radix Energy (Singapore), Spectron Energy (Asia), TFS Energy (S), and Starsupply Tullett Energy, as well as Oil Trade Associates which is the management company for FMCL.
The week on Risk.net, December 2–8, 2017Receive this by email