Benchmark and differential
A benchmark gives a reference. A physical offer also needs a quality and location differential, a pricing window, a unit and a currency. Write those terms together before comparing offers. A cheaper quoted barrel can become the more expensive delivered cargo.
Time matters twice
Pricing dates determine the invoice basis. Transit and waiting time determine when the cargo is available and how long capital is committed. The cargo tool makes both voyage days and delay days visible without forecasting either.
What the number leaves out
A single price cannot describe freight, financing, terminal access, product yield or customer demand. Start with the operational question, then choose the price series that actually fits it.
A practical comparison
Use the Cargo Cost Comparator to put two fictional routes on one barrel volume and benchmark assumption. Keep separate records for contractual terms, grade suitability and delivery reliability.
Three benchmark contexts
| Reference | Context | Check before comparing |
|---|---|---|
| WTI | The NYMEX light sweet futures reference uses Cushing, Oklahoma delivery. | Is the quoted price for Cushing, another location differential or a different contract month? |
| Brent | The ICE Brent Index is tied to the relevant North Sea cash or forward delivery month. | Does the quote refer to the index, a futures contract or a physical assessment? |
| Dubai / Oman | Platts assessments provide Middle Eastern physical pricing references used in Asia Pacific trade. | Which assessment, loading month and grade specification are being compared? |
Benchmark definitions only. Enter fictional price assumptions in the tools.
Primary sources
Reviewed 7 November 2026. Educational interpretation of the sources.
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