Crude oil and petroleum products are priced at all stages of the oil value chain. Major pricing points are:

  • Wellhead price - Price or value of crude oil at the point of production, before any transportation
  • Crude gathering point price - Price of crude at a point where volumes are aggregated for shipping, usually at a seaport or major pipeline injection point
  • Refinery gate price - Price of crude delivered to a refinery, or price of product leaving a refinery
  • Spot market price - Price at the point where large parcel or cargoes physically trade hands
  • Rack price - Price of a truck load of product at a distribution terminal loading facility, known as the loading rack
  • Dealer tankwagon price - Price of a truckload of gasoline or diesel delivered to a fuel retailer
  • Pump price - Price of gasoline or diesel to the retail consumer at a retail filling station.

International crude and product transactions are typically in US dollars. Wholesale (rack) prices are typically in the local market currency, as are prices to final consumers.

The units for oil trade are typically either USD/barrel or USD/metric ton.

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