What is benchmark price?Benchmark Price
A widely accepted reference price, such as a crude oil futures front-month price; physical deals are often priced off it plus or minus a premium or discount.
Learn “benchmark price” in an animated lesson
- Physical CommoditiesBenchmark Prices and Physical Premiums
It's all called "crude oil", but oil from different fields and ports sells at different prices. Physical price = benchmark + quality premium/discount + freight.
- Physical CommoditiesWhat Are Commodities?
Crude oil, gold, copper, wheat… standardized physical goods traded in bulk. They're the raw materials of the world economy.
Related terms
See how “benchmark price” works for yourself with an animation you can drag and play.
Go to “Benchmark Prices and Physical Premiums”