Assessment

An Assessment is a benchmark price published by a Price Reporting Agency such as Platts or Argus, representing the market value of a commodity during a defined observation period. Assessments are central to price discovery in energy markets because they provide transparent, independent reference points for physical and financial settlement, long-term contracts, risk-management strategies, and commercial negotiations. Assessments are derived from a combination of reported transactions, bids, offers, spreads, and other verified market information submitted by participants. Agencies apply strict methodologies to ensure data integrity, including transaction-verification protocols, minimum volume thresholds, and rules governing how indicative or discretionary data may be used. The resulting published assessment reflects the most representative price of the commodity at the specified delivery location, grade, timing, and specification. Energy traders use Assessments to settle swaps and futures, structure physical index-linked contracts, evaluate arbitrage opportunities, and benchmark asset performance. Crude and refined products frequently reference these assessments, as do LNG, LPG, coal, natural gas, and power markets in varying degrees. Because many markets lack fully transparent exchange trading, Assessments serve as vital signals of supply-demand balance, regional dislocations, and evolving market sentiment.