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jamesfromlondon
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Joined: July 24th, 2008, 7:42 am

Gasoil pricing

November 10th, 2009, 11:10 am

Hello,Firstly, sorry this is not a particularly quantitative question - but hopefully someone can help me anyway I am trying to find out how gasoil 6-0-3 pricing works. I am in the process of putting together some simple pricing models, nothing particular out of the ordinary, and I am hoping to use this product as part of a demonstration.I cant seem to find out what this pricing actually is anywhere!! I gather it is a standard way of pricing a physical deal across three different curves - i.e., you buy gasoil but it is priced basis the six month average prior to delivery date, plus some spot component, plus some forward component. If anyone can help me out with a simple explanation of what this pricing structure is I would be very grateful.Thanks for your help,James
 
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CommOddity
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Joined: July 25th, 2007, 8:22 am

Gasoil pricing

November 10th, 2009, 6:10 pm

Hi James, on the physicalmarket these contracts are quite common (I saw dozens of them): you will hardly find anything around because it's something of little interest for academics (but as often happens of big interests for traders).What are your doubts about?
 
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jamesfromlondon
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Joined: July 24th, 2008, 7:42 am

Gasoil pricing

November 11th, 2009, 11:33 am

Many thanks to both outrun and commodity here for your help.Basically, I am putting an environment together and I want to put in some examples of these types of pricing as I was informed they are very common. Gasoil is not my background, and none of the text books etc I have mention this pricing structure.I fully appreciate it isnt really an academic or quant question - just I know there are people on here that can answer anything So where better to pose the question?Outrun - if you could let me know just one example of the actual underlying index, or combinations of, that would be splendid - then I can get some proper prices together and the historical data, and everything will work swimmingly!!Thanks again,James