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Procedures & Methodology
Our experienced team collects both prices and market information true a combination of our interactive platform, conversations with key players and macro economic and statistic analysis done by our analysts.
We add value by combining these information resources into a comprehensive weekly report.
Base Oil Prices
As part of the reference base oil price formulation process, for each index a statistical analysis of the other information collected from data providers with the price data is also prepared - including price range and delivery time range. This data is analyzed as part of the validity and robustness tests carried out on each index calculated. It remains confidential and is securely stored.
If the data sample does not meet the necessary robustness criteria for any product/region, fall-back procedures are employed to compile the reference price for that product/region.
As a first level of fall-back, the data sample collected for the current period is supplemented by "rolling over" data submissions made during the previous period by Data Providers that have not submitted any data during the current period. Any data rolled forward carries a reduced volume weighting in the calculation of the final reference price. If, after this measure, there is still insufficient data to meet the necessary robustness criteria, the data sample is supplemented with firm bid and offer price data for the relevant period. This also carries a reduced volume weighting relative to any transaction data submitted for the current period.
BOM Equity indices
The BOM Equity indices are market capitalization weighed indices with a regional focus. The indices are designed to represent movements on relevant equity markets for the purpose of gauging investor sentiment. The indices are not constructed for investment purposes or for benchmarking equity investments. BaseOilMarket.com may change the methodology of the index without prior notice if this results in a better representation of the sentiment on global equity markets.
The Shanghai Stock Exchange (SSE)
The Shanghai Stock Exchange (SSE) is the most preeminent stock market in Mainland China in terms of number of listed companies, number of shares listed, total market value, tradable market value, securities turnover in value, stock turnover in value and the T-bond turnover in value. As such BaseOilMarket.com considers the SSE to be an excellent indicator of sentiment amongst Chinese investors and -more indirect- of future economic developments in mainland China. For more information on the SSE please go to www.sse.com.cn.
BOM Commodity Index
The BOM Commodity index is a representation of the global commodity market. The index is based on spot returns derived from futures contracts. The index includes the subsectors Energy, Precious metals, Industrial Metals, Agriculture and Livestock. The weight of every subsector is limited to 35% of the index and the weight for a single commodity is limited to 15%. The index is rebalanced once a year.
The BOM Commodity index is designed to give a broad representation of the global commodity markets and consists of at least 18 different commodities. The index is not meant to be investable or to serve as a benchmark for commodity investments. BaseOilMarket.com may change the methodology of the index without prior notice if this results in a better representation of the global commodity markets.
