“Price agencies that determine the daily reference price of oil.”
An F.A.Z. article described the way price agencies such as Platts, mainly Platts but also e.g. Argus and I.C.I.S., set a daily world reference price for oil using sales data provided by “market participants.” An expert commented to the newspaper that estimated data are also allowed to flow into those equations because not everyone makes a sale in every oil product type every day. Yet oil sellers have the unhealthy incentive of being able to sell their oil products at higher prices for the next 24 hours after submitting higher price data to the price agencies. Oil financial product sellers that are somehow involved with these price agencies, or somehow involved with the market participants supplying the data used in the agencies’ price-setting formulas, would presumably have similar inflationary incentives.
(PRIZE ogg en TOUR en, dee dane TAY glichh en ref ah RENTS prize foor ILL ə MITT ell n.)