Price Assessment Methodology

Headquartered in London, Quantum Commodity Intelligence is an independent price reporting agency that offers an impartial, robust price reporting service dedicated to providing transparency in the energy and environmental markets.

The methodologies deployed by Quantum Commodity Intelligence are designed to provide fair market value in all the markets it assesses.

As such, this document sets out how Quantum arrives at its end-of-day price for global energy and environmental markets.

 

Quantum Principles

Quantum adheres to a set of key principles when assessing data that falls within the parameters of the methodology.

Those are:

- to reflect trades, transacted at arms-length adjusted for a given time;
- in the absence of trade, to reflect bids and offers that are shown to be market value;
- in the absence of physical data, to reflect prices in relation to liquid derivatives; and
- to ensure data is verifiable and provided by recognised sources.

In all markets, Quantum seeks to establish assessments through reported trades, or bids and offers, that have been conducted on an open and transparent trading platform.

The reporting of the data must come from a trusted market source, such as a broker or a trader, that has been vetted and approved by Quantum.

In thinly traded and non-financialized markets, Quantum relies on market surveys to establish value. Surveys are conducted with approved sources via email, instant messenger, app-based services and telephone.

For some assessments, prices reflect a fixed differential to a more liquid counterpart.

 

Methodology details

Quantum provides assessments that are comparable with the leading benchmarks.

The majority of oil commodity product prices will reflect value between 4.29pm and 4.30pm in Singapore for Asian assessments, and also 4.29pm and 4.30pm in London for European prices.

Assessment times will change to 12.29pm and 12.30pm on half day closes, which will be published in the Quantum holiday schedule.

The precise details of the methodology for each assessment – specification of the product, volume size, laycan, location of delivery or loading port – are published on the Quantum website.