METHODOLOGY AND SPECIFICATIONS GUIDE

ARGUS AMERICAS CRUDE

Contents:
Methodology overview 2
Americas pipeline markets 8
Americas waterborne markets 13
Freight15
Updates15

LAST UPDATED: SEPTEMBER 2024

The most up-to-date Argus Americas Crude methodology is available on www.argusmedia.com

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METHODOLOGY AND SPECIFICATIONS GUIDE September 2024

Methodology overview high/low market assessments for Canadian grades. These price as-
sessments will be entered into the Argus price database as on any
Methodology rationale regular business day, and subscribers to Argus data will have access
Argus strives to construct methodologies that reflect the way the mar- to the updated data as on any other business day. Only differential
ket trades. Argus aims to produce price assessments which are reli- indices will be calculated on these days; outright prices will not be cal-
able indicators of commodity market values, free from distortion and culated because there will be no Nymex crude settlement to provide
representative of spot market values. As a result, the specific curren- the fixed price component.
cies, volume units, locations and other particulars of an assessment
are determined by industry consensus to facilitate seamless bilateral Argus will announce its publishing schedule in a calendar located at
trade and Argus mirrors these industry conventions. www.argusmedia.com. Argus may not assess prices on certain public
holidays even when the exchanges are open, due to anticipated il-
In the Americas crude markets, Argus typically reflects physical market liquidity in the cash spot markets.
prices across the entire trading day as a low and high of deals done
and in some markets a volume-weighted average of deals done. In
illiquid markets and time periods, Argus assesses the range within Survey process
which crude could have traded by applying a strict process outlined Argus price assessments are informed by information received from a
later in this methodology. In some markets, Argus also produces wide cross section of market participants, including producers, con-
cumulative transaction averages across a month and cumulative daily sumers and intermediaries. Argus reporters engage with the industry
averages. An entire day price is a reliable indicator of physical market by proactively polling participants for market data. Argus will contact
values as it incorporates the broadest possible pool of spot market and accept market data from all credible market sources including
liquidity and has acceptance from industry. Argus applies crude basis front and back office of market participants and brokers. Argus will
differential transactions to the WTI settlement price to arrive at fixed also receive market data from electronic trading platforms and directly
prices because the futures settlement price is a representative futures from the back offices of market participants. Argus will accept market
price reference. This approach has been endorsed by industry accep- data by telephone, instant messenger, email or other means.
tance. Certain markets are referenced to Brent crude at a certain time
of day, and details are located in the sections below. See also section Argus encourages all sources of market data to submit all market data
“Definition of trading day.” to which they are a party that falls within the Argus stated methodolog-
ical criteria for the relevant assessment. Argus encourages all sources
In order to qualify to set the low or high of the day, deals must meet the of market data to submit transaction data from back office functions
minimum volume, delivery, timing, and specification requirements in our when and where possible.
methodology, and the deals must be bona fide. With the exception of
volume, the same requirements apply to volume-weighted averages. Throughout all markets, Argus is constantly seeking to increase the
number of companies willing to provide market data. Reporters are
mentored and held accountable for expanding their pool of contacts.
Definition of trading day The number of entities providing market data can vary significantly
Argus defines the trading day by determining at what times the market from day to day based on market conditions. Should the number of
can be said to contain a fair number of willing buyers and sellers. entities providing market data repeatedly fall to a level that assess-
Outside of these time boundaries, markets are typically too illiquid to ment quality may be affected, supervising editors will review the
produce representative price indications and deals. These boundaries viability of the assessment.
can vary in different markets, and will be under continuous review to
maintain the accuracy of the assessments. The trading day is defined For certain price assessments identified by local management, should
as follows: more than 50pc of the market data upon which the assessment
US Gulf coast 7:00am – 3:00pm CT is based come from a single entity during any assessment period
US midcontinent pipeline 7:00am – 3:00pm CT (defined as the minimum period covered, such as a day for a daily
Canadian pipeline 7:00am – 3:30pm MT assessment), then the supervising editor will engage in an analysis of
Canada waterborne 8:00am – 3:30pm CT the market data with the primary reporter to ensure that the quality and
Latin America waterborne 8:00am – 4:00pm CT integrity of the assessment has not been affected.
US west coast pipeline 7:00am – 4:00pm PT Argus has committed to deliver many of our final published prices
US west coast waterborne 7:00am – 4:00pm PT to clients by a particular deadline each day. Because compiling and
confirming transactions and other market data in advance of this
For Canada, on days when the CME Nymex is closed but Canadian deadline is a lengthy process, price assessment procedures must
physical oil markets are open (eg US Thanksgiving, US Independence be concluded well before that deadline. As a result, for the Americas
Day), Argus will not publish its Americas Crude Report (ACR), but it crude markets, Argus has instituted cut-off times for the submission
will gather Canadian deals and create volume-weighted indices and of data by market participants. Argus will review all data received after

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METHODOLOGY AND SPECIFICATIONS GUIDE September 2024

the cut-off time and will make best efforts to include in the assessment Primary tests applied by reporters
process all verifiable transactions and market data received after the • Transactions not transacted at arms-length, including deals
cut-off time but reserves the right to exclude any market data from the between related parties or affiliates.
process if received after the cut-off time. • Transaction prices that deviate significantly from the mean of
all transactions submitted for that day.
Cut-off times • Transaction prices that fall outside of the generally observed
US Gulf coast and midcontinent 4:00 pm CT lows and highs that operated throughout the trading day.
US West coast waterborne and pipeline 4:00 pm CT • Transactions that are suspected to be a leg of another transac-
Canadian pipeline 5:00 pm CT tion or in some way contingent on an unknown transaction.
Canadian waterborne 4:00 pm CT • Single deal volumes that significantly exceed the typical trans-
Latin America 4:30 pm CT action volume for that market.
• Transaction details that are identified by other market partici-
pants as being for any reason potentially anomalous.
Market data usage • Transaction details that are reported by one counterparty dif-
In each market, Argus uses the methodological approach deemed ferently than the other counterparty.
to be the most reliable and representative for that market. Argus will • Any transaction details that appear to the reporter to be illogi-
utilize various types of market data in its methodologies, to include: cal or to stray from the norms of trading behavior. This could
1. Transactions include but is not limited to divergent specifications, unusual
2. Bids and offers delivery location and counterparties not typically seen.
3. Other market information, to include spread values between • Transactions that involve the same counterparties, the same
grades, locations, timings, and many other data. price and delivery dates are checked to see that they are
In many markets, the relevant methodology will assign a relatively separate deals and not one deal duplicated in Argus records.
higher importance to transactions over bids and offers, and a relatively
higher importance to bids and offers over other market information. Secondary tests applied by editors for transactions
Certain markets however will exist for which such a hierarchy would identified for further scrutiny
produce unreliable and non-representative price assessments, and so
the methodology must assign a different relative importance in order Transaction tests
to ensure the quality and integrity of the price assessment. And even • The impact of linkage of the deal to possible other transactions
in markets for which the hierarchy normally obtains, certain market such as contingent legs, exchanges, options, swaps, or other
situations will at times emerge for which the strict hierarchy would derivative instruments. This will include a review of transactions
produce non-representative prices, requiring Argus to adapt in order in markets that the reporter may not be covering.
to publish representative prices. • The nature of disagreement between counterparties on trans-
actional details.
• The possibility that a deal is directly linked to an offsetting trans-
Verification of transaction data action that is not publicly known, for example a “wash trade”
Reporters carefully analyze all data submitted to the price assessment which has the purpose of influencing the published price.
process. This data includes transactions, bids, offers, volumes, counter- • The impact of non-market factors on price or volume, including
parties, specifications and any other information that contributes materi- distressed delivery, credit issues, scheduling issues, demur-
ally to the determination of price. This high level of care applies regardless rage, or containment.
of the methodology employed. Specific to transactions, bids, and offers,
reporters seek to verify the price, the volume, the specifications, location Source tests
basis, and counterparty. In some transactional average methodologies, • The credibility of the explanation provided for the outlying
reporters also examine the full array of transactions to match counterpar- nature of the transaction.
ties and arrive at a list of unique transactions. • The track record of the source submitting the data. Sources
will be deemed more credible if they
Several tests are applied by reporters in all markets to transactional º Regularly provide transaction data with few errors.
data to determine if it should be subjected to further scrutiny. If a º Provide data by Argus’ established deadline.
transaction has been identified as failing such a test, it will receive º Quickly respond to queries from Argus reporters.
further scrutiny. For certain price assessments identified by local º Have staff designated to respond to such queries.
management, Argus has established internal procedures that involve • How close the information receipt is to the deadline for informa-
escalation of inquiry within the source’s company and escalating tion, and the impact of that proximity on the validation process.
review within Argus management. Should this process determine that
a transaction should be excluded from the price assessment process,
the supervising editor will initiate approval and, if necessary, docu-
mentation procedures.

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METHODOLOGY AND SPECIFICATIONS GUIDE September 2024

Assessment guidelines • Comparison to trade in the same commodity but in a different

When insufficient, inadequate, or no transaction information exists, or modality (as in barge versus oceangoing vessel) or in a different
when a transaction based methodology will not produce representa- total volume (as in full cargo load versus partial cargo load).
tive prices, Argus reporters will make an assessment of market value by
applying intelligent judgment based on a broad array of factual market Throughout this methodology, Argus will explain, in more detail and on
information. Reporters must use a high degree of care in gathering and a market by market basis, the criteria and procedures that are used to
validating all market data used in determining price assessments, a make an assessment of market value by applying intelligent judgment.
degree of care equal to that applying to gathering and validating transac- Extensive subsections will be labeled with the header “Assessment
tions. The information used to form an assessment could include deals Guidelines.”
done, bids, offers, tenders, spread trades, exchange trades, fundamental
supply and demand information and other inputs.
Volume minimums and transaction data thresholds
The assessment process employing judgment is rigorous, replicable, In establishing each methodology, Argus will list specific minimum
and uses widely accepted valuation metrics. These valuation metrics volume for each assessment. Because of the varying transportation
mirror the process used by physical commodity traders to internally infrastructure found in all commodity markets, Argus typically does not
assess value prior to entering the market with a bid or offer. Apply- establish thresholds strictly on the basis of a count of transactions,
ing these valuation metrics along with sound judgment significantly as this could lead to unreliable and non-representative assessments.
narrows the band within which a commodity can be assessed, and Instead, minimum volumes are typically established which may apply
greatly increases the accuracy and consistency of the price series. to each transaction accepted, to the aggregate of transactions, to
The application of judgment is conducted jointly with the supervising transactions which set a low or high assessment or to other volumetri-
editor, in order to be sure that guidelines below are being followed. cally relevant parameters.
Valuation metrics include the following:
For certain price assessments identified by local management, Argus
Relative value transactions will seek to establish minimum transaction data thresholds and when
Frequently transactions occur which instead of being an outright no such threshold can be established Argus will explain the reasons.
purchase or sale of a single commodity, are instead exchanges of These thresholds will often reflect the minimum volumes necessary
commodities. Such transactions allow reporters to value less liquid to produce a transaction-based methodology, but may also establish
markets against more liquid ones and establish a strong basis for minimum deal parameters for use by a methodology that is based
the exercise of judgement. primarily on judgment.
• Exchange one commodity for a different commodity in the
same market at a negotiated value. Should no transaction threshold exist, or should submitted data fall be-
• Exchange delivery dates for the same commodity at a negoti- low this methodology’s stated transaction data threshold for any reason,
ated value. Argus will follow the procedures outlined elsewhere in this document
• Exchange a commodity in one location for the same commod- regarding the exercise of judgment in the price assessment process.
ity at another location at a negotiated value.
Minimum transaction thresholds for key assessments
Bids and offers Minimum Transaction
If a sufficient number of bids and offers populate the market, then Thresholds
the highest bid and the lowest offer can be assumed to define the VWA
Low/high
boundaries between which a deal could be transacted. Modal- aggregate
Commodity Location minimum
ity minimum
volume
volume
Comparative metrics WTI Formula
Pipeline Cushing, OK na 1,000 b/d
The relative values between compared commodities are readily Basis month 1
discussed in the market and can be discovered through dialogue Bakken Pipeline Clearbrook, MN 500 b/d na
with market participants. These discussions are the precursor to Bakken DAPL Pipeline North Dakota 500 b/d 1,000 b/d
negotiation and conclusion of transactions. Bakken Patoka Pipeline Patoka, IL 500 b/d 1,000 b/d
• Comparison to the same commodity in another market center. LLS month 1 Pipeline St James, LA 1,000 b/d 3,000 b/d
• Comparison to a more actively traded but slightly different Mars month 1 Pipeline Clovelly, LA 1,000 b/d 3,000 b/d
WTS Pipeline Midland, TX 1,000 b/d 1,000 b/d
specification commodity in the same market center.
WTI Houston Pipeline MEH 500 b/d 1,000 b/d
• Analysis of prices in forward markets for physically deliverable
WTI Midland Pipeline Midland, TX 1,000 b/d 1,000 b/d
commodity that allow extrapolation of value into the prompt
Poseidon Pipeline Houma, LA 500 b/d 1,000 b/d
timing for the commodity assessed.
Nederland/
• Comparison to the commodity’s primary feedstock or primary SGC Pipeline 500 b/d 1,000 b/d
Texas City, TX
derived product(s). Western
Canadian Pipeline Cushing, OK 500 b/d 1,000 b/d
Select (WCS)

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METHODOLOGY AND SPECIFICATIONS GUIDE September 2024

US west coast
Crude quality Buena Vista 26.0 1.10
US and Canada pipeline grades are created by blending the output Midway Sunset 13.0 1.20
from many different fields flowing into a particular pipeline system.
Canada
Production vol­umes and quality from individual fields can change,
as can transporta­tion logistics into or out of pipeline systems. Such Syncrude 32.3 0.18

changes inevitably alter the composition and quality of the final pipe- WCS 20.8 3.63
line blend. Argus assessments for US and Canada pipeline crudes Cold Lake 21 3.73
are not meant to reflect any fixed gravity or sulphur content. Instead, Condensate 59.3 0.08
Argus assesses prevailing “stream quality” as it exits the pipeline sys-
MSW 41.8 0.37
tem and is made available fob from the terminal, allowing the market
LSB 37.9 1.14
to make determinations as to quality and value of pipeline grades.
LLB 21.2 6.47

For waterborne crude, Argus assesses the program quality as loaded AWB 22.5 3.76
by the producing entity. Argus does not apply escalators or de-esca- CDB 22.3 3.66
lators to its Americas crude assessments to compensate for variations Waterborne
in quality between individual cargoes.
US Gulf coast

WTI fob 40-44 <0.20

For a list of typical crude properties, including API gravity and sulphur
content, see the Americas crude quality table Bakken fob 42-44 0.18

US west coast

ANS 32.0 0.96

Americas crude quality Mexico
Grade °API % sulphur Maya 21-22 3.4
Pipeline Olmeca 38-39 0.73-0.75
US Gulf coast and midcontinent Isthmus 32-33 1.8
WTI Cash Cushing 37-42 <0.42 Zapoteco 29-29.9 2.51
WTI CMA 37-42 <0.42 Colombia
WTI Houston 42.2 0.13 Vasconia 24-27 0.83
WTI Midland 42.2 0.13 Castilla 19.1 1.8
WTL Midland 48.0 0.05 Argentina
WTI P-Plus 37-42 <0.42 Escalante 24.1 0.19
White Cliffs 47-51 0.01-0.07 Medanito 39-44 <0.50
Pony Express Light 47-51 0.01-0.07 Ecuador
Grand Mesa Light 47-51 0.01-0.07 Oriente 22-24 1.50-1.70
Saddlehorn Light 47-51 0.01-0.07 Napo 16-18 2.18-2.38
Bakken 42-44 0.18 Guyana
Niobrara 39-44 0.39 Liza 32 0.58
Light Sweet Guernsey 40-46 <0.2 Unity Gold 34.5 0.41
LLS 38.4 0.39 Payara Gold 28 0.58
HLS 33.5 0.42 Canada
Thunder Horse 30.1 0.96 Hibernia 34.1 0.56
WTS 33-35 1.5-1.8
*crude qualities are indicative only, last revised in November 2020, WTI fob US
Poseidon 29.2 2.09 Gulf Coast last revised in September 2022

Mars 29.7 1.95

Southern Green Canyon 27.9 2.38

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METHODOLOGY AND SPECIFICATIONS GUIDE September 2024

Transparency and confidentiality High: The “fixed” or “outright” price. Reference price plus dif-
Argus values transparency in energy markets. As a result, we publish ferential high.
lists of deals in our reports that include price, basis, and volume Weighted Average: The weighted average “fixed” or “outright”
information. The deal tables allow subscribers to cross check and price. Reference price plus differential weighted average.
verify the deals against the prices. Argus feels transparency and Delta: The change between today’s absolute price and that of the
openness is vital to developing confidence in the price assessment previous trading day.
process.

Argus asks for transaction counterparty names from contacts in order Forward curves
to confirm deals and to avoid double-counting in volume-weighted See Argus North American Crude Oil Forward Curves methodology.
averages. But Argus does not publish counterparty names in the
Americas crude markets. Many companies have existing confidentiality Publications and price data
agreements with counterparties and can only reveal deals to the press if Argus crude prices for the Americas are published in the Argus Ameri-
confidentiality is maintained. Maintaining confidentiality allows Argus to cas Crude report. These prices appear as a subset of the daily Argus
gather more information and create more robust assessments. Crude report which adds coverage of markets in Europe, Africa, the
Mideast Gulf and Asia-Pacific. Other Argus publications also include
some Argus Americas Crude pricing data. Among these publications
Basis differentials and absolute prices are Argus Latin Markets, Argus Global Markets, Argus Asphalt and
In the Americas crude markets, differentials to futures benchmarks or Argus LatAm Energy. The price data is available independent of the
to secondary benchmarks are the negotiated bids, offers, and trans- text-based report in electronic files that can feed into various data-
action values. Argus fixed prices are derived by adding the assessed bases. These price data are also supplied through various third-party
differentials to the benchmark price. data integrators. The Argus website also provides access to prices,
reports and news with various web-based tools. All Argus prices are
US pipeline differentials are applied to the WTI Formula Basis in kept in a historical database and available for purchase. Contact your
order to derive fixed prices. The WTI Formula Basis is represented local Argus office for informa­tion.
as a single outright price and is provided for two months forward.
US west coast grade differentials are expressed against local posted
prices. Waterborne Canadian grade Hibernia is priced against North Corrections to assessments
Sea Dated. Certain Latin American grades utilize Ice Brent as a price Argus will on occasion publish corrections to price assessments after
reference. Mexican crude prices are published as a single value, with the publication date. We will correct errors that arise from clerical
equivalent differentials derived against front-month Nymex crude mistakes, calculation errors, or a misapplication of our stated meth-
futures, for easy comparison against other grades assessed around odology. Argus will not retroactively assess markets based on new
the Americas. Detailed explanations of the use of postings, calendar information learned after the assessments are published. We make
month averages, and the WTI Formula Basis are covered in individu- our best effort to assess markets based on the information we gather
al sections in this document. during the trading day assessed.

Argus publishes various price types for each commodity. These typi- If transaction information is submitted in error, and the company sub-
cally include mitting informs Argus of the error within 24 hours of the original sub-
mission, Argus will make best efforts to correct the price data. After 24
Differential Low: The low differential to a reference price. hours, Argus will review both the material effect that the correction will
Differential High: The high differential to a reference price. have on the price data and the amount of time that has elapsed from
Differential Weighted Average: A value arrived at by multiplying the date of the published price data before deciding whether to issue
each deal’s volume by its differential price, summing the resulting a correc­tion. After 30 days, submitters are not expected to file correc-
value for all deals in a grade on a given day, and dividing that final tions to submitted data.
sum by the total volume. Expressed as a differential to a reference
price. Ethics and compliance
Differential Month-to-Date Weighted Average: An average of Argus operates according to the best practices in the publishing field,
the daily differential weighted averages since the first day of the and maintains thorough compliance procedures throughout the firm.
current trade month up to and including the date of assessment. We want to be seen as a preferred provider by our sub­scribers, who
Expressed as a differential to a reference price. are held to equally high standards, while at the same time maintaining
Monthly Average: An arithmetic average of the daily differential our editorial integrity and independence. Argus has a strict ethics pol-
and outright price assessments during the named trade month. icy that applies to all staff. The policy can be found on our website at
Published on the second day after the end of the trade month. www.argusmedia.com. Included in this policy are restrictions against
Low: The “fixed” or “outright” price. Reference price plus differen- staff trading in any energy commodity or energy related stocks, and
tial low.

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METHODOLOGY AND SPECIFICATIONS GUIDE September 2024

guidelines for accepting gifts. Argus also has strict policies regard- • Informal discussions with other stakeholders
ing central archiving of email and instant messenger communication, • Internal review of market data
maintenance and archiving of notes, and archiving of spreadsheets
and deal lists used in the price assessment process. Argus publishes Should changes, terminations, or initiations be merited, the report
prices that report and reflect prevailing lev­els for open-market arm’s editor will submit an internal proposal to management for review and
length transactions (please see the Argus Global Compliance Policy approval. Should changes or terminations of existing assessments be
for a detailed definition of arms length). approved, then formal procedures for external consultation are begun.

Consistency in the assessment process Changes to methodology

Argus recognizes the need to have judgment consistently applied Formal proposals to change methodologies typically emerge out of
by reporters covering separate markets, and by reporters replacing the ongoing process of internal and external review of the methodolo-
existing reporters in the assessment process. In order to ensure this gies. Formal procedures for external consultation regarding material
consistency, Argus has developed a program of training and oversight changes to existing methodologies will be initiated with an announce-
of reporters. This program includes: ment of the proposed change published in the relevant Argus report.

1. A global price reporting manual describing among other things This announcement will include:
the guidelines for the exercise of judgment.
2. Cross-training of staff between markets to ensure proper holi- • Details on the proposed change and the rationale
day and sick leave backup. Editors that float between markets • Method for submitting comments with a deadline for submis-
to monitor staff application of best practices. sions
3. Experienced editors overseeing reporting teams are involved • Notice that all formal comments will be published after the given
in daily mentoring and assisting in the application of judgment consultation period unless submitter requests confidentiality
for illiquid markets.
4. Editors are required to sign-off on all price assessments each Argus will provide sufficient opportunity for stakeholders to analyze
day, thus ensuring the consistent application of judgment. and comment on changes, but will not allow the time needed to follow
these procedures to create a situation wherein unrepresentative or false
prices are published, markets are disrupted, or market participants are
Review of methodology put at unnecessary risk. Argus will engage with industry throughout this
The overriding objective of any methodology is to produce price as- process in order to gain acceptance of proposed changes to methodol-
sessments which are reliable indicators of commodity market values, ogy. Argus cannot however guarantee universal acceptance and will act
free from distortion and representative of spot market values. As a re- for the good order of the market and ensure the continued integrity of its
sult, Argus editors and reporters are regularly examining our method- price assessments as an overriding objective.
ologies and are in regular dialogue with the industry in order to ensure
that the methodologies are representative of the physical market being Following the consultation period, Argus management will commence
assessed. This process is integral with reporting on a given market. an internal review and decide on the methodology change. This will
In addition to this ongoing review of methodology, Argus conducts be followed by an announcement of the decision in the relevant Argus
reviews of all of its methodologies and methodology documents on at report and include a date for implementation. In addition, publication
least an annual basis. of stakeholders’ formal comments that are not subject to confiden-
tiality and Argus’ response to those comments will also take place.
Argus market report editors and management will periodically and These formal comments should be published in a manner described
as merited initiate reviews of market coverage based on a qualita- by management but must be available to all market participants and
tive analysis that includes measurements of liquidity, visibility of stakeholders.
market data, consistency of market data, quality of market data
and industry usage of the assessments. Report editors will review:
Updates to methodology
• Appropriateness of the methodology of existing assessments The Argus Americas Crude methodology is constantly updated and
• Termination of existing assessments revised. The latest available methodology (which may supersede the
• Initiation of new assessments one you are reading) is available at www.argusmedia.com.

The report editor will initiate an informal process to examine viability.

This process includes:

• Informal discussions with market participants

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METHODOLOGY AND SPECIFICATIONS GUIDE September 2024

Americas pipeline markets In order to facilitate the use of Argus prices, Argus combines Nymex
futures and WTI spot prices into a single pricing series called the “WTI
WTI-related markets Formula Basis”. This series represents the Nymex settlement up to and
including futures expiry, then automatically switches to represent the
mean of the first month WTI Cushing spot assessment for the three
West Texas Intermediate (WTI)
business days which precede pipeline scheduling. Companies using
VWA Argus to price US pipeline crudes need only reference the WTI Formula
Low/High
aggregate
Assessment Location minimum Basis in their contracts when needing to reference the WTI component
volume
volume
minimum of another crude. For example, the “fixed”, “outright” or “absolute” price
WTI Cash Cushing Cushing, OK 1,000 b/d 1,000 b/d for LLS prompt month minus the WTI Formula Basis prompt month
WTI CMA Cushing, OK 1,000 b/d 1,000 b/d equals the LLS prompt month differential.
WTI Midland Midland, TX 1,000 b/d 1,000 b/d
Enterprise terminal, Reported differentials for White Cliffs, Niobrara and Bakken trades at
WTI Midland Enterprise 1,000 b/d 1,000 b/d
Midland, TX
Cushing, as well as Light Sweet Guernsey trades, will be normalized to
WTI Houston MEH 500 b/d 1,000 b/d
account for any pump over or terminal fees that are not typically reflected
WTI P-Plus Cushing, OK 500 b/d 1,000 b/d
in market differentials.
WTI Cushing and WTI Formula Basis
The spot price for WTI at Cushing, Oklahoma is assessed four months Calendar Month Averages
forward. It reflects Nymex light sweet crude futures settlements at The US and Canadian markets use various Calendar Month Averages
1.30pm Central time. For the front-month assessment in the three (CMA) of the light sweet crude futures settlement prices on Nymex or Ice
days following expiration of Nymex futures, trades done for the Month- as a reference for trading WTI and other grades.
One/Month-Two WTI Cushing cash roll throughout the day are aver-
aged on a volume-weighted basis. The resulting Cash Roll average US Markets
is then applied to that day’s price for WTI Nymex prompt month set- WTI at Cushing can trade at either a differential to a “Merc” Days average
tlement, in order to derive the first-month WTI Cushing value. If trade or a differential to a Calendar Days (also known as “Cal” Days or All Days)
in the cash roll falls short of the VWA Aggregate Volume minimum for average. Both methods are based on the spread between the first and
WTI Cash Cushing on any of the three days following expiry, Argus will second, and between the first and third, Nymex light sweet crude futures
use an assessment of where the cash roll was valued by participants contracts. This method is designed to arrive at a reference price that
in the market that day. Assessments for cash WTI at Cushing roll to represents WTI on a calendar month basis instead of a trade month.
the next month on the fourth business day following expiration of the
front-month Nymex light sweet crude futures contract (see sidebar). Merc Days: The most common CMA basis in the US is the Merc
Days average, which is calculated using only days when the
For US pipeline assessments, outright prices are derived by adding differ- Nymex is open for business.
entials to Nymex settlement prices until their expiration. For the three days Calendar Days: The less common Calendar Days method extends
between futures expiration and pipeline scheduling, those differentials are the Nymex settlement prices from Friday, replicating it as the
added to the WTI Cushing spot assessment (see above). value for Saturday and Sunday. It then includes both work days
and weekend days in the average. Market holidays carry over the
value of the previous business day’s settlement as well.
Nymex expiration dates
Expiration dates for the Nymex light sweet crude futures contract are The Argus Diff to CMA assessment is a volume-weighted average of
aligned with the scheduling deadline for shipments on US pipelines. differentials traded against both the Merc Days and Calendar Days
For US pipelines, shipments must be scheduled no later than the CMA bases, since the two methods typically yield numbers that dif-
25th day of the preceding month. In the event that the 25th falls on a fer only slightly from one another. Argus includes both in the single
weekend or holiday, the pipeline scheduling deadline moves forward
assessment to reflect the maximum amount of liquidity available, but
to the first business day before the 25th. The Nymex front-month crude
keeps the policy under review should market conditions change.
futures expiration is three business days prior to that.

For example, 25 January 2010 fell on a Monday and was the deadline Argus also publishes the spread, at the time of the settlement, between
for scheduling February pipeline shipments. The February 2010 light the Nymex light sweet crude futures contract and the Nymex CMA for two
sweet crude futures contract expired three business days earlier, on forward months.
Wednesday 20 January. The 25th day of April 2010 fell on a Sunday,
the deadline for scheduling May pipeline shipments was Friday, 23 Posted prices
April and the May 2010 futures contract expired three business days Argus assesses WTI on a Postings-Plus basis, where the market trades a
earlier, on Tuesday, 20 April spot premium to the prompt WTI postings issued by Phillips 66. Argus does
not publish the WTI postings issued by any company, but the Phillips 66 price
can be found at this link: http://www.phillips66.com/EN/products/business/
crude_oil/bulletin/Pages/index.aspx. (as of 3 January 2023).

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METHODOLOGY AND SPECIFICATIONS GUIDE September 2024

US Gulf coast and midcontinent pipeline

US Gulf coast US midcontinent
VWA VWA
Low/High mini- aggregate Low/High mini- aggregate
Assessment Location Assessment Location
mum volume volume mum volume volume
minimum minimum
Bakken Beaumont/ Beaumont/Neder- ex-Basin pipeline,
500 b/d 1,000 b/d WTI ex-pipe Cushing 1,000 b/d 1,000 b/d
Nederland land Cushing, OK
HLS fob Empire, LA 1,000 b/d 1,000 b/d WTI CMA Cushing, OK 1,000 b/d 1,000 b/d
LLS (Month One) St. James LA† 1,000 b/d 3,000 b/d WTI Houston MEH 500 b/d 1,000 b/d
LLS (Month Two) St. James LA† 500 b/d 1,000 b/d WTI Houston (Month
MEH 500 b/d 1,000 b/d
Two)
Mars (Month One) fob Clovelly, LA 1,000 b/d 3,000 b/d
WTI Midland Midland, TX 1,000 b/d 1,000 b/d
Mars (Month Two) fob Clovelly, LA 500 b/d 1,000 b/d
WTI Midland (Month
Poseidon fob Houma, LA 500 b/d 1,000 b/d Midland, TX 500 b/d 1,000 b/d
Two)
fob Nederland, TX Enterprise terminal,
Southern Green Canyon 500 b/d 1,000 b/d WTI Midland Enterprise 1,000 b/d 1,000 b/d
or Texas City, TX Midland, TX
Thunder Horse fob Clovelly, LA 1,000 b/d 1,000 b/d WTL Midland Midland, TX 1,000 b/d 1,000 b/d
Western Canadian WTI P-Plus Cushing, OK 500 b/d 1,000 b/d
Houston area* 500 b/d 1,000 b/d
Select (WCS) Houston
WTS (Month One) Midland, TX 1,000 b/d 1,000 b/d
Canadian High TAN Houston area* 500 b/d 1,000 b/d
Argus American Gulf- 1,000 b/d pipe- WTS (Month Two) Midland, TX 500 b/d 1,000 b/d
Selected locations, 500 b/d pipeline
Coast Select Marker line or Aframax Bakken DAPL North Dakota 500 b/d 1,000 b/d
see page 11 Aframax cargoes
(Argus AGS Marker) cargoes
Bakken Patoka Patoka, IL 500 b/d 1,000 b/d
Argus American Gulf- 1,000 b/d pipe-
Selected locations, 500 b/d pipeline
Coast Select (Argus line or Aframax Bakken Clearbrook, MN 500 b/d
see page 11 Aframax cargoes
AGS) cargoes
Light Sweet Guernsey Guernsey, WY 500 b/d 1,000 b/d
*Houston area includes Nederland, Beaumont and Enterprise ECHO terminals
† for LLS assessments, St. James includes the Capline, Locap, Plains, NuStar and Bakken Cushing, OK 500 b/d 1,000 b/d
Shell Sugarland terminals in St. James
Niobrara Cushing, OK 500 b/d 1,000 b/d
DJ Light Cushing, OK 500 b/d 1,000 b/d
White Cliffs Cushing, OK 500 b/d 1,000 b/d
Western Canadian
Cushing, OK 500 b/d 1,000 b/d
Select (WCS)
Low and High Prices Canadian High TAN Cushing, OK 500 b/d 1,000 b/d
Argus assesses the range of trade for each grade over the entire day.
These assessments are displayed as differentials to the WTI Formula Canadian High TAN at Cushing and Canadian High TAN at Houston are
Basis (or CMA Nymex in the case of Canadian High TAN, WCS, Bakken assessments of AWB and CDB crudes. Transactions for AWB and CDB
at Clearbrook, Bakken DAPL, Bakken Patoka, Light Sweet Guernsey, and will be included in the respective determination of the high and low range
CMA Nymex plus the Diff to CMA Nymex for Bakken at Beaumont/Neder- at each location. If the values of AWB and CDB diverge, only transactions
land) and as fixed prices. for the more consistently liquid of the two grades would be used.

WCS Cushing and WCS Houston are assessments of WCS and Cold For HLS, Thunder Horse, WTI Midland, WTS, Poseidon and SGC,
Lake crudes. Transactions for WCS and Cold Lake will be included in the trades against WTI, LLS or Mars will be used to determine a high and
respective determination of the high and low range at each location. If low range on any given day. For all other grades listed above, only
the values of WCS and Cold Lake diverge, only transactions for the more trades against WTI will be used to determine a high and low range. If
consistently liquid of the two grades would be used. there is insufficient trade for a particular grade on any given day, Argus
will assess the range in which trade could have occurred based on
DJ Light at Cushing is an assessment of Grand Mesa Light, Saddlehorn various market indications. The assessed range will be published by
Light, White Cliffs and Pony Express Light crudes. Transactions for Grand Argus as the low-high range for that day.
Mesa Light, Saddlehorn Light, White Cliffs Cushing and Pony Express Light
will be included in the respective determination of the high and low range at Reported differentials for all assessed crude grades will be normalized
Cushing. If any of the values of Grand Mesa Light, Saddlehorn Light, White to account for any pump over or terminal fees that are not typically
Cliffs Cushing and Pony Express Light diverge, only transactions for the most reflected in market differentials.
consistently liquid group of grades would be used.
In order to set the low or high of the daily range, a deal must meet a vol-
ume minimum established for each grade and listed in the table above.

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METHODOLOGY AND SPECIFICATIONS GUIDE September 2024

Volume-Weighted Averages pipeline crudes. Because industry crude contracts typically specify pric-
Argus publishes volume-weighted averages of deals done through the entire ing to the fourth decimal place, Argus shows these final calculations at
trading day. For Bakken DAPL, Bakken Patoka, Light Sweet Guernsey, WCS the end of the trade-month to the fifth decimal place, so that any issues
and Canadian High TAN this includes trade conducted at a differential to with rounding will not impact contract buyers or sellers of the crude.
Nymex CMA and for Bakken at Beaumont/Nederland trade at a differential
to Nymex CMA plus the Diff to Nymex CMA. For WTL Midland and WTS
Midland, this includes trade conducted at a differential to WTI Midland. For Basis (Location)
HLS, Thunder Horse, WTI Midland, WTS, Poseidon and SGC, this includes Crudes are assessed fob at specific pipeline hubs where spot trade is
all trade done versus WTI, LLS or Mars. For deals done versus LLS, Mars or centered.
WTI Midland, Argus will convert those deals into a synthetic differential to WTI.
Using Poseidon as an example, if Poseidon trades versus Mars then Argus Light Sweet Guernsey prices are assessed at six terminals in Guernsey,
will carry out the following steps: Wyoming: True Companies’ Guernsey /Bridger Guernsey HUB, Plains’ Ft
Laramie, Kinder Morgan’s HH, Enbridge’s Platte, Silver Creek/Tallgrass’
1. Convert each Poseidon deal done at a differential to Mars into Powder River Gathering terminals and Tallgrass’ Pony Express Terminal.
a differential to WTI: Light Sweet Guernsey is an assessment of Light Sweet at Guernsey,
a Calculate the Mars volume-weighted average differential Rocky Mountain Sweet, Powder River Sweet and Bakken Light Sweet
based on transactions versus WTI crudes. Transactions for those four grades will be included in the respec-
b Apply each Poseidon differential to Mars to the Argus Mars tive determination of the high and low range for Light Sweet Guernsey.
volume-weighted average differential
2. Calculate a volume-weighted average differential for deals done
using all Poseidon deals done at a differential to WTI as well as Volume
all converted Poseidon deals from step 1. The resulting weight- Trades in the US pipeline market are transacted at volumes expressed
ed-average differential will be expressed as a differential to WTI. as barrels delivered per calendar day (b/d) or total barrels per month.
3. Apply the differential from step 2 to the WTI Formula Basis price. A trade reported as 1,000 b/d for the month of March would be
equivalent to 31,000 barrels total delivered rateably over the calendar
Volume-weighted averages are published as a single differential to the month of March. Trades such as cash rolls, strips and boxes that are
WTI Formula Basis (or CMA Nymex in the case of Bakken DAPL, Bak- reported as total volumes are divided by the total number of days in
ken Patoka, Light Sweet Guernsey, WCS and Nymex CMA plus the Diff the “earliest of the specified delivery months to obtain an equivalent
to Nymex CMA in the case of Bakken at Beaumont/Nederland), and volume expressed in barrels delivered per calendar day (b/d).
as a single fixed price.

WCS Cushing and WCS Houston are assessments of WCS and Cold Timing and Roll Dates
Lake crudes. Transactions for WCS and Cold Lake will be included in the Prices are assessed for the forward month in which the crude will be
respective calculation of the volume-weighted average differential at each delivered. Month One assessments end after that month’s pipeline
location. If the values of WCS and Cold Lake diverge, only transactions scheduling deadline has passed. All US pipeline assessments roll
for the more consistently liquid of the two grades would be used. on the fourth business day following expiry of the Nymex light sweet
crude futures contract, which is the same as the first business day
All bona fide deals reported to Argus, regardless of size, are factored following the pipeline scheduling deadline.
into volume-weighted averages. However, Argus must have at least
the minimum volume of total trade listed in the above table for a grade Argus rolls its Bakken Clearbrook price basis forward on Canadian
in order to calculate a volume-weighted average price. If a grade does pipeline nominations day, also called initial NOS deadline, typically
not have a total traded volume of at least the minimum listed in the falling around the 18th calendar day of the month. So, for example,
above table done on any given day as a differential to WTI, Argus will assuming the pipeline nominations deadline for March injected bar-
make an assessment of the range within which the grade could have rels is 17 February, Argus daily prices reflect April as the front month
traded. This assessment will be published by Argus as the volume- beginning on 17 February. Argus considers a new trade month to have
weighted average price for that day. begun on each pipeline scheduling day.

Differential Month-to-Date Weighted Average

Each day, in the US Gulf coast and midcontinent markets, Argus Argus American GulfCoast Select
publishes an average of the prompt month volume-weighted average
differentials for the trade month to date, including the day of publication. Prices are for WTI Midland-quality crude in the Houston Area and include
This value is rounded to two decimal places in the daily pricing table. At market activity at the Enterprise ECHO terminal in Houston, Magellan East
the conclusion of each trade month, Argus publishes a table of average Houston terminal (MEH), Genoa junction, Speed junction, Valero junction
trade-month values, both on a differential and fixed-price basis for US and Moore Road, as well as waterborne fob activity at Enterprise Houston

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METHODOLOGY AND SPECIFICATIONS GUIDE September 2024

Terminal (EHT), Texas City, Seabrook, Beaumont/Nederland and Corpus West coast pipeline
Christi. Market information at all locations will be adjusted to the Enter-
prise ECHO terminal in Houston using locational spreads. Postings Averages
Postings averages are calculated as an average of the prices posted
Pipeline activity must meet a 500 b/d minimum to be considered for inclu- by Chevron, Shell, ExxonMobil and Phillips 66 on the same day as
sion in the low-high assessments. Waterborne fob activity must be for the most recent Argus Americas Crude publication before the current
Aframax cargoes of 500,000-800,000 bl and for loading beginning during date of publication. Argus posting averages are updated and available
the current pipeline trade month. Aggregate volumes must meet a 1,000 each evening by 5:30pm CT.
b/d minimum for calculation of the volume-weighted average.
Light Postings Average: comprised of the Buena Vista posted prices
Prices will be adjusted to an ECHO terminal basis using historical locational issued by these companies.
price spreads, which will be updated monthly based on the previous three
months of trade. The history of these adjustment factors is available through Heavy Postings average: comprised of the Midway posted prices is-
the Argus Direct platform, FTP and other electronic means. sued by these companies.

Argus may update these adjustment factors outside of this schedule if Argus also calculates and publishes the spread between the postings
there is a significant change in the market, but not without notice. averages and Ice Brent.
The assessments will include market activity at outright prices and at
differentials to front-month Nymex WTI, front-month Nymex WTI CMA, Canada pipeline
prompt-trade month Argus WTI Houston, or front-month Ice Brent .
Argus has structured Canadian crude oil assessments to reflect the
Argus American GulfCoast Select Marker (Argus AGS unique market characteristics of each Canadian grade and to reflect
Marker) the broadest possible array of market activity.

Published as low, high and volume-weighted average outright prices. In Canada, Argus provides the following types of index prices:

Market activity reported as an outright price will be considered for inclu- Daily weighted average price: This method captures the entire
sion in the AGS Marker assessment without further conversion, except day of deals done as a volume weighted average, which
for the locational adjustment described above. Market activity reported Argus publishes as a differential. This differential average is
only as a differential with an associated timestamp will be converted to an then applied to the day’s CMA Nymex in order to provide an
outright price by applying the differential to the underlying basis price at outright daily mark. This allows companies to connect their
the time the deal was done. For market activity reported as a differential physical program with the hedging program on a daily basis.
without an associated timestamp, Argus may calculate outright prices us-
ing the Nymex WTI settlement, the Ice Brent settlement or another method Monthly average price: An arithmetic average of the daily differential
Argus deems to be representative of the market. price assessments between pipeline nominations day and the
business day prior to the following pipeline nominations day.
Argus American GulfCoast Select (Argus AGS)
Published as low, high and volume-weighted average differentials and Low/high price range: These prices reflect the full range of deals
as fixed prices. The fixed prices are calculated by applying the as- done each day. This range is essential to assessing value in
sessed differentials to the Nymex WTI front-month settlement. illiquid markets and reflects the movement of prices over the
trading day.
Market activity reported as a differential to Nymex WTI will be consid-
ered for inclusion in the AGS assessment without further conversion, Argus values liquidity and seeks to reflect the breadth of the spot
except for the locational adjustment described above. Market activity market. This leads Argus to create price indices that include deals
reported as an outright price with an associated timestamp, or as done on all broker and exchange platforms, deals done bilaterally, and
a differential to a basis other than Nymex WTI listed above with an deals done through the entire trading day. With this price discovery
associated timestamp, or reported as a differential with an outright methodology, Argus can provide a comprehensive total market index
differential basis price will be converted to a differential to Nymex WTI for all crudes assessed.
by applying the differential to the underlying basis price at the time the
deal was done. For market activity reported as an outright price or a
differential to a secondary basis without an associated timestamp or
outright price, Argus may calculate differentials to Nymex WTI prices
either using the Nymex WTI settlement, the Ice Brent settlement or
another method Argus deems to be representative of the market.

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METHODOLOGY AND SPECIFICATIONS GUIDE September 2024

Crudes assessed according to Trading day

Argus considers all bona fide deals done and reported during the
volume-weighted average method:
period from 7am-3:30pm, prevailing time in Calgary (Mountain Time),
VWA
Density Pricing aggregate
Low/High in the calculation of its low, high, and daily weighted average prices.
Assessment minimum
kg/m³ location volume
volume
minimum

Pembina AOSP
Timing and Roll Dates
Syncrude (SSP) 860 5,000m³/month 2,500m³/month
at Edmonton Argus rolls its price basis forward at 7:00am on pipeline nomina-
tions day, also called initial NOS deadline, typically falling around the
Western
Husky at 18th calendar day of the month. This date is the Crude Oil Logistics
Canadian Select 925 5,000m³/month 2,500m³/month
Hardisty
(WCS) Committee’s “Initial Notice of Shipment deadline”. So, for example,
Western assuming the pipeline nominations deadline for March injected barrels
Canadian Select 925 Cushing, OK 1,000 b/d 500 b/d
(WCS) is February 17, Argus daily prices reflect April as the prompt month
Note: 1m³ = 6.28981 bl beginning on February 17. Argus considers a new trade month to have
begun on each pipeline scheduling day.

Spot trade only

Basis (Location) Argus indices are meant to be a reflection of spot trade done at a differ-
• Syncrude (SSP) – This assessment reflects synthetic crude pro- ential to WTI. Therefore, deals done as part of a strip or priced against
duced by Syncrude Canada and delivered at the Edmonton another month or a grade other than WTI cannot be considered in the
terminus of Pembina’s AOSPL (Alberta Oil Sands Pipe Line volume-weighted index. Deals priced against posted prices cannot be
Ltd). Deals for SSP in the Edmonton pipeline/tank facilities of included in the index. Internal transfers between divisions of the same
Enbridge are also considered in the index. company cannot be considered as representative spot deals. Deals
• Western Canadian Select (WCS) Hardisty – This reflects WCS done conditional upon credit agreements or other pending arrange-
blend at Husky’s facilities in Hardisty and includes in-line ments will not be included in Argus price indices.
deals on the Enbridge pipeline system (EIL).

Volume-Weighted Averages CMA Nymex

The daily weighted average price for these grades is set by the volume The CMA Nymex is calculated by extending the current day’s Nymex
weighted average of all deals during the trading day. The volume weight- prompt-month futures settlement for “Light Sweet Crude Oil (WTI)” until
ed average is calculated by multiplying the price of each deal (reported its expiry date, and extending the current day’s second-month WTI
as a differential) by the volume of the deal, then summing the results and settlement over the remaining days in the calendar month following
dividing by the total volume traded on that grade throughout the day. prompt-month expiry. After the prompt month contract expires, the new
prompt month is extended until the end of the calendar month. Because
The daily weighted average is stated as a differential and as an out- the CMA Nymex is a calculated value of a future price it will not corre-
right price. The outright price is calculated by applying the weighted spond to the actual CMA, which can only be known retrospectively once
average differential price to the daily CMA Nymex. the month in question has passed and actual WTI settlements for each
day in that month can be averaged.
There is no minimum volume threshold for including any individual
deal in the daily volume weighted average. However, if the aggregate
daily volume of trade for any grade fails to reach a specified minimum Other Canadian Crudes assessed
volume (see table), the daily volume weighted price for that day will In addition to providing volume-weighted prices for the most actively
reflect the mean of the low/high price range assessed for that grade traded petroleum liquids streams in western Canada, Argus provides
on that day. The assessed range will be published by Argus as the assessments of prices for other less-actively traded streams shown
low-high range for that day. below. On days in which trade occurs on these grades, Argus will set
its price range based on the highest and lowest price achieved on
trades during the day. In order to set the high or low for the range, a
Low and High Prices deal must reach a certain volume threshold, shown in the tables.
For every grade of crude assessed, Argus publishes a low and high of
deals done throughout the entire trading day. In order to qualify to set the
low or high of the day, deals must meet the minimum volumes as speci-
fied in this methodology (see table at right). In illiquid markets, Argus pric-
ing represents an intelligent assessment of the range within which a crude
grade could have traded during the entire trading day. The assessed
range will be published by Argus as the low-high range for that day.

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METHODOLOGY AND SPECIFICATIONS GUIDE September 2024

Canadian minimum volumes WTI intramonth spreads

Low/High
Assessment Pricing location minimum Argus publishes waterborne WTI assessments for specific 10-day (decade)
volume
loading windows during the named month. Loading windows are for five pe-
Enbridge CRW pool
riods during the named months and all roll to the next trade month in line with
Condensate at Edmonton and 2,500m³/month
feeder lines the US pipeline schedule. Prices are assessed for cargoes loading between
Enbridge the 1st and 10th, the 11th and 20th and between the 21st and the end of the
Mixed Sweet (MSW) 2,500m³/month
at Edmonton first named month and for cargoes loading between the 1st and 10th and
Lloyd Blend (LLB) Hardisty 2,500m³/month between the 11th and 20th of the next named month.
Enbridge or Westspur
Light Sour Blend (LSB) 2,500m³/month
at Cromer
Assessments are made on a prompt WTI Houston and month-two Ice
Cold Lake (CLK) Hardisty 2,500m³/month
Brent pricing basis relative to the month of loading.
Access Western Blend (AWB) Edmonton 2,500m³/month

Christina Lake (CDB) Hardisty 2,500m³/month Example:

CMA Nymex Cushing, OK

Note: 1m³ = 6.28981 bl Loading window Basis

1-10 November November WTI Houston

Americas waterborne markets
January Ice Brent

11-20 November November WTI Houston

US Gulf coast waterborne
January Ice Brent
US Gulf coast 21-30 November November WTI Houston

Assessment Location Volume January Ice Brent

1-10 December December WTI Houston

WTI fob USGC 500,000-800,000 bl
February Ice Brent
Bakken fob Beaumont/Nederland 500,000-650,000 bl
11-20 December December WTI Houston

February Ice Brent

Argus assesses the price of WTI and Bakken crude loading free on
board (fob) at several locations along the US Gulf coast. Insurance
and freight costs are not represented in these assessments. US Gulf coast Aframax reverse lightering
See the Argus Tanker Freight methodology.

Low and High Prices

Prices are the low and high range within which oil traded or could US west coast waterborne
have traded in the trading day. Prices are published as differentials to
US west coast
the CMA Nymex, Ice Brent and the WTI Houston pipeline assessment,
and as outright prices. Bakken assessments are of the price of trade Assessment Location Minimum volume
in cargoes between 500,000 bl and 650,000 bl in size. WTI assess-
ANS cif US west coast 300,000 bl
ments are of the price of trade in cargoes between 500,000 bl and
800,000 bl in size.

Outright prices
Argus calculates US Gulf coast waterborne outright prices by adding Low and High Prices
the differentials to the CMA Nymex to the prompt CMA Nymex price as Prices represent the low and high range within which oil traded or could
determined by the US pipeline schedule. have traded throughout the trading day. Prices are published as differen-
tials to the CMA Nymex, concurrent Nymex and CMA Ice Brent, and as
Timing and roll dates outright prices. ANS pricing represents cargo lots of 300,000 bl or above.
The timing of the price assessments is for the period 15-45 days ahead.
Argus rolls its fob price basis forward on the US pipeline schedule, which
typically runs from around the 26th calendar day two months prior to de- ANS delivery month VWA
livery to the 25th calendar day of the month before delivery. For example, Cumulative delivery month differentials are published as a differential
assuming the pipeline schedule for March delivered barrels starts 26 to the Ice Brent CMA for the named month by calculating a volume-
January, Argus daily fob prices will reflect March as the front month begin- weighted average of all transactions for delivery in the named month
ning on that date and ending around 25 February. that take place 10-60 days before the start of the named month. VWAs

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METHODOLOGY AND SPECIFICATIONS GUIDE September 2024

are published for the latest traded delivery month and three previous TAN prices are published as differentials to Ice Brent and the CMA
delivery months. Averages for actively traded delivery months are Nymex and as outright prices. Prices for Hibernia are published as dif-
published as delivery month-to-date VWAs. The final VWA for each ferentials to the North Sea Dated assessment at 4:30pm London time,
delivery month is determined on the last business day at least 10 days and as outright prices. Trades and discussion for partial-cargoes are
prior to the beginning of the corresponding calendar month. not included in the assessment process. Argus prices represent only
full-sized Aframax cargoes of 500,000 bl or more.
Outright Prices
Argus calculates the ANS del USWC outright price by adding the ANS Basis (Location)
differential to the CMA Nymex to the projected CMA Nymex for the Cold Lake and High TAN assessments are for crude for loading out of Van-
month of delivery. For the ANS del USWC, WTI concurrent outright couver. Hibernia assessments are for crude loading at the Newfoundland
price, Argus adds the ANS differential to the Nymex WTI settlement for Transshipment Terminal at Whiffen Head. Insurance and freight costs are not
the month of delivery. represented in these assessments.

Timing
Basis (Location) Cold Lake and High TAN assessments are for loading 45-75 days
Assessments are on a cif basis. ahead and their fob price basis rolls forward on the first working day
of the calendar month. Hibernia assessments are a continuous series
with no roll date. Prices represent physical cargoes that have loading
Timing dates 10-45 days forward, and their timing is referred to as Dated (ab-
ANS prices are assessed for the named month of delivery between 10 breviated “Dtd” in the daily report).
and 60 days before the beginning of each delivery month. Prices roll
forward as needed to accurately reflect current market discussion and
trade but will never roll forward earlier than 60 days or later than 10 Latin American waterborne
days before the beginning of the month.

Latin America
Ice Brent CMA Assessment Location Timing
Minimum
volume
Except for December, the Ice Brent CMA for a given month is equal
Castilla Blend fob Colombia 10-60 days forward 1mn bl
to the current day’s settlement for the Ice Brent crude futures contract
two months forward from the given month. Vasconia fob Colombia 10-60 days forward 500,000 bl

Escalante fob Argentina 10-60 days forward 500,000 bl

The Ice Brent CMA for December is calculated by extending the cur- Medanito fob Argentina 10-60 days forward 400,000 bl
rent day’s Ice Brent February futures settlement until it’s expiry date
Oriente fob Ecuador 10-60 days forward 360,000 bl
and including the current day’s Ice Brent March futures settlement for
Napo fob Ecuador 10-60 days forward 360,000 bl
the final day. Because the Ice Brent CMA is a calculated value of a
future price it will not correspond to the actual CMA, which can only be Liza fob Guyana 10-60 days forward 1mn bl

known retrospectively once the month in question has passed and ac- Unity Gold fob Guyana 10-60 days forward 1mn bl
tual Ice Brent settlements for each day in that month can be averaged. Payara Gold fob Guyana 10-60 days forward 1mn bl

Canadian waterborne
Low and High Prices
Canada Prices represent the low and high range within which oil traded or could
Minimum have traded in the trading day. Prices are published as differentials to
Assessment Location Timing
volume Nymex light sweet crude futures, and as fixed prices. Prices are also pub-
Cold Lake fob Vancouver 45-75 days forward 500,000 bl lished as differentials to Ice Brent crude futures. For crudes out of Guyana,
High TAN fob Vancouver 45-75 days forward 500,000 bl prices are published as differentials to North Sea Dated and Nymex light
Hibernia fob Whiffen Head 10-45 days forward 500,000 bl
sweet crude futures. Assessments reflect trade in cargoes no smaller than
the minimum volumes listed above.

Mexico Formulas
Low and High Prices Prices for Isthmus, Maya, Olmeca and Zapoteco for delivery to the Ameri-
Prices represent the low and high range within which oil traded or cas, Asia-Pacific, India and Europe are calculated using a formula for
could have traded throughout the trading day. Cold Lake and High each grade and destination market. Prices are published as fixed prices

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METHODOLOGY AND SPECIFICATIONS GUIDE September 2024

and as differentials to the reference prices listed below. The K-Factor Timing
adjustments to formulas, revised monthly by Mexico, are also published. Mexican prices (Isthmus, Maya, Olmeca and Zapoteco) are calculated
for the current calendar month. All other Latin American assessments
Americas represent a continuous series with no roll dates, for cargoes loading
Prices are published as fixed prices and as differentials to Nymex WTI 10-60 days forward.
and calculated as (0.65 WTI Houston pipeline) + (0.35 Ice Brent front-
month settlement) + K Factor Freight
Europe
Prices are published as fixed prices and as differentials to North Sea Freight rates are an average of the five most recent published values.
Dated and calculated as Ice Brent front-month settlement + K Factor See the Argus Tanker Freight methodology.

India • USGC to east coast Canada 70,000t

Prices are published as fixed prices and as differentials to North Sea • USGC/Caribbean to Singapore 130,000t
Dated and calculated as Ice Brent front-month settlement + K Factor • USGC to China 130,000t
• USGC to China 270,000t
Asia-Pacific • USGC to UKC 70,000t
Prices are published as fixed prices and as differentials to Dubai and • USGC Aframax reverse lightering lumpsum
calculated as (Oman + Dubai)/2 + K Factor
Updates
Basis (Location) For the publication schedule check www.argusmedia.com.
All Latin American cargo assessments represent free on board (fob)
prices at the country of origin. Insurance and freight costs are not The Argus Americas Crude methodology is constantly updated and
represented in these assessments. revised. The latest available methodology (which may supersede the
one you are reading) is available at www.argusmedia.com.

15 www.argusmedia.com