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Energy

Name Change on New Oil Price Assessment

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published
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Today is the first day of reporting for the new crude oil price assessment announced earlier this month by Platts. The new marker has already had its name changed from Americas Sour Marker to Americas Crude Marker (ACM). The marker reflects the price of sour crude in the Gulf Coast region.

The most popular current price marker for US crude is the WTI contract from NYMEX, which is none to happy about the ACM assessment. There is little danger that the ACM benchmark will replace WTI any time soon, if ever. Unless and until ACM becomes a tradeable contract on NYMEX or ICE, there’s virtually no chance that it will replace WTI. And even if ACM were tradeable, both NYMEX and ICE have their own contracts that would compete with the new benchmark.

Because WTI is essentially traded only within the US, the WTI benchmark price is not exposed to the ups and downs of supply and demand in the global market for the more widely available sour crudes. An Americas sour crude benchmark would reflect those effects, and, combined with the more costly refining required for sour crudes, could cause the global market price for crude to rise.

It’s probably too early to predict what effect the ACM benchmark will have on the crude market. But now’s a good time to start paying attention to the price of sour crude from the Gulf Coast.

Paul Ausick
March 16, 2009

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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