Replies to post #1897 on America Asia Petroleum Corp. (fka AAPU)

[RedSky]

may be, that we're on the right place not doub..

Crude Pricing

Crude oil is sold through a variety of contract arrangements and in spot transactions. Oil is also traded on futures markets but not generally to supply physical volumes of oil, more as a mechanism to distribute risk. These mechanisms play an important role in providing pricing information to markets.

In fact the pricing of crude oils has become increasingly transparent from the 1990s onwards through the use of marker crudes such as West Texas Intermediate (WTI – USA), Brent (Europe and Africa), Dubai and Oman (Middle East), and Tapis and Dubai (in Asia). The main criteria for a marker crude is for it to be sold in sufficient volumes to provide liquidity (many buyers and sellers) in the physical market as well as having similar physical qualities of alternative crudes. In addition the marker crude should provide pricing information.