EBF 301
Global Finance for the Earth, Energy, and Materials Industries

Summary and Final Tasks


Key Learning Points: Lesson 5

  1. Cash prices reflect physical commodity trading.
  2. “Posted” prices or “Indexes” represent the market price.
  3. Publications poll market participants and calculate “weighted” average prices.
  4. Indexes are posted daily, weekly, monthly.
  5. Three main price publications exist for natural gas.
  6. Two main price publications exists for crude oil & natural gas liquids.
  7. Market price publications are subscription only.
  8. The U.S. Energy Information Administration has extensive current and historical market pricing for natural gas, crude oil and natural gas liquids.

While copyright laws prohibit me from reproducing copies of their reports, here are the website links so you can see the data and, in some cases, view a sample report.

Platt's Gas Daily - http://www.platts.com/IM.Platts.Content/ProductsServices/Products/gasdaily.pdf

Platt's Inside FERC - http://www.platts.com/IM.Platts.Content/ProductsServices/Products/gasmarketreport.pdf (pages 6 & 8)

OPIS - http://www.opisnet.com/Images/ProductSamples/NAmericanLPGReport-sample.pdf

ARGUS - http://www.argusmedia.com/Crude-Oil

In this lesson, we addressed the physical cash marketplace that, for the most part, deals with the "here and now." In the next lesson, we will delve into the financial "futures" markets, whereby commodity prices can be obtained for future months and years.


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