An Analysis of Reference Prices for WESTPAC JP-4 Procurement.

摘要

The Defense Fuel Supply Center procures JP-4 fuel requirements for the Western Pacific market area using fixed price contracts with escalation. Currently, several reference prices are used in DFSC contracts, upon which contract price adjustments are based. The authors analyzed the petroleum market and attempted to determine if there is one 'best' reference price or combination of reference prices that could be used in DFSC contracts. The authors concluded that the 'best' reference price was a combination of crude oil posted prices. (Author)