Crude Oil Price Differentials - Methodology
Global crude oil markets are anchored around three primary benchmarks — Brent, Dubai/Oman, and WTI. The prices of most traded crude streams are expressed as premiums or discounts to one of these marker crudes.
These price differentials reflect multiple structural drivers, including product crack structures, regional demand–supply balances, freight economics, and refinery configuration effects
Benchmark prices themselves exhibit inter-relationships — for example, Brent–Dubai and Brent–WTI spreads — which influence regional price formation and arbitrage flows
This section allows users to vary selected high-impact assumptions and assess resulting crude price deltas relative to their marker crudes. Based on these assumptions, region-wise product price sets are also derived. Default input values reflect conditions typical of a broadly balanced global market environment
While numerous additional parameters influence crude differentials, the demo version focuses on a manageable set of key drivers. Remaining factors are incorporated using structured modelling assumptions derived from our domain knowledge
In the Commercial Model, users may adjust the full set of relevant parameters, enabling comprehensive recalculation of crude differentials and region-wise product price structures
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