PRIX_index
The PRIX index (or Political Risk for Oil Exports Index) is a financial indicator for international oil markets to understand the political risks associated with oil exports.[1] The index forecasts and sums up political risks around the world that may affect the supply of oil to international markets.[2][3] It is based on the same methodology as a Purchasing Managers' Index. Around 250 country analysts provide input, which is subsequently used to calculate an index value for each of the world’s 20 largest oil-exporting countries. Each of these country values is subsequently weighted by the exports of the countries in order to compute a single, weighted, global PRIX index number that sums up the political risk for international oil markets during the coming three months.
Variations in oil exports are an important component of global oil price formation.[4] Thus, the PRIX index forecast may help identify potential trajectories of international price of oil. However, other factors than political risks affect the global balance between supply and demand of oil and thus contribute to setting the oil price.[5] The index therefore does not predict the oil price itself as it does not cover economic and technological developments, but it can function as a component in oil price forecasting.