Generally this is based on a formula approach where a marker crude is used as the base and then a quality differential (premium/discount) as well as a demand/supply (premium/discount) is added depending on the crude being purchased.
Thus in times of tight supply this premium will rise and gradually drag up the Marker crude price, whilst in times of surplus supply, a reduced premium or even a discount will drag down the Marker crude price. Of course big changes, announcement or events that can significantly influence crude supply levels will sometimes result a large step change in the prices of crude oil (eg. OPEC announcements, civil unrest or wars, hurricane activity, major refinery shutdowns or outages etc).
That is, crude oils being purchased do not always slavishly follow marker crudes. Marker crudes are indicators of what is happening in regional markets.
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