All terms

Pricing & benchmarksarbitrage

Arbitrage

Buying product in one market and selling in another where the price net of freight is higher.

Arbitrage in physical oil is the practice of moving cargoes between markets where the destination price (net of freight, finance, inspection, and port costs) exceeds the origin price.

The classic east-west arb is driven by Brent-Dubai (EFS). The Gulf-to-East-Africa arb is driven by Arab Heavy vs Dated Brent plus clean VLCC/Suezmax rates.

OilFlow's matching engine computes an arb window per corridor daily in intel snapshots.

Related: EFS, Freight, Laycan.

Frequently asked

What does Arbitrage mean in oil and commodity trading?
Buying product in one market and selling in another where the price net of freight is higher.
How do I check a counterparty that uses Arbitrage in a deal?
The term itself is not enough to clear or condemn a deal. What matters is the counterparty behind the pitch. Screen that name for free against 8 sanctions lists plus PEP and OilFlow's first-party cluster corpus in seconds, or order the full 7-step dossier for $25, and confirm identity documents and banking details independently before you transact.

See also

efsfreightlaycan

Seen this term in a live pitch?

These terms show up in real deal pitches — some legitimate, some not. OilFlow screens the counterparty behind the pitch against 8 sanctions lists + PEP and a first-party-investigated fraud-cluster corpus, with a clearance verdict in under 30 seconds.