The Argus Sour Crude Index (ASCI) is a pricing tool used by buyers, sellers and traders of imported crude oil for use in long-term contracts.
The ASCI methodologyArgus Sour Crude Index - Methodology and specifications guide creates a single daily volume-weighted average price index of aggregate deals done for three component crude grades as if they were one grade of crude oil.
The three crude oil grade components are Mars, Poseidon, and Southern Green Canyon.
Thus the daily ASCI price published by Argus Media Ltd represents the value of US Gulf coast medium sour crude oil.
Market adoption The Argus Sour Crude Index (“ASCI”) has been adopted as the benchmark price for sales of crude oil by Saudi Aramco (in 2009),Bloomberg - Saudi Aramco to Use Sour Oil Index as U.S. Benchmark, Drop WTI Kuwait (in 2009) and Iraq (in 2010).Bloomberg - Iraq Will Use Argus Crude Price Formula From April
Contracts based upon ASCI are listed on the world's two largest oil exchanges, the CME Group New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE).Reuters - ICE to launch Argus sour crude futures contracts
External links Argus Sour Crude Index (“ASCI”) Official website of Argus Media
References