Global energy and commodity price reporting agency Argus has extended its Argus Open Markets (AOM) real-time electronic price discovery platform to biodiesel in New York Harbor. A trade was initiated on the opening day of operation, 30 April, the first recorded for AOM in the US, and the platform has seen market activity on every subsequent day.
The AOM platform offers real-time price transparency and enables registered market participants to post bids and offers every day, and to initiate trades.
Biodiesel demand is growing in the US northeast, in line with mandates for increased blending into the region’s heating oil pool. The AOM platform and Argus biodiesel price assessment provide important tools for risk management in this growing market.
The expansion of the AOM platform to US biofuel market participants builds on its long-standing use in Europe and Asia. In Europe, AOM covers biodiesel, feedstocks and renewable fuels; and in Asia, it covers biodiesel and feedstocks markets.
Argus Media chairman and chief executive Adrian Binks said: “The demand for biofuels in the US is growing rapidly and we are pleased to have worked closely with market participants to extend Argus Open Markets to the growing New York biodiesel trading hub. Market participants have embraced the greater visibility into biodiesel price discovery that supports both internal compliance and overall market transparency.”
Argus is the leading publisher of biofuels, feedstocks and renewable fuel benchmarks. Its price assessments are the industry standard and are used extensively in physical and term contracts across biofuel supply chains. Argus’ renewable fuel price assessments are fast being adopted by participants as industry standards around the world for the sustainable aviation fuel and hydrogenated vegetable oil markets.
Argus biofuel prices have been adopted by exchanges for settlement of a range of futures contracts including biodiesel, feedstocks and renewable fuels in Europe, biodiesel and feedstocks in Asia, as well as biodiesel in the US.
