|2014 Conference Speaker: Markus Wimmer|
Is the Used Motor Oil Market Ready For Price Indexation?
The market for used motor oil (UMO) has seen tremendous change over the past decade, largely based on evolving processing technology and a shift toward new value chains such as base oil rerefining. The pricing of UMO has not caught up with this development, and is still largely tied to No. 6 fuel oil and other price baskets that are oftentimes unrelated to the unique supply and demand balance for UMO. Particularly the buying and selling on unrelated price indexes exposes parties to undue risk and uncertainty. Argus proposes to create a pricing tool that identifies the unique value of used motor oil independent from its end usage to provide structure across its entire value chain.