Platts to include US crude grade WTI in its dated Brent oil price assessment
[LONDON] S&P Global Platts said on Thursday it would open a consultation with oil market participants on the possible inclusion of the US crude grade WTI in its dated Brent oil price assessment, which forms the basis of the Brent benchmark.
A light sweet crude, WTI is a common feedstock for European refineries which makes it a good fit for the existing basket of British and Norwegian grades Brent, Forties, Oseberg, Ekofisk and Troll making up the dated Brent basket, Platts said.
The North Sea is a mature basin, where oil production is declining, which has made the inclusion of an increasing number of streams necessary over the years, although WTI Midland would be the first non-North Sea grade to be included.
"With robust daily export volumes of over 1 million barrels per day, (WTI's) inclusion... would provide additional volume and ensure the continued robustness of Dated Brent for the next decade and beyond," said Platts Head of Oil Markets Price Reporting Vera Blei.
About 443,000 bpd of this arrives in Europe, Platts said.
Platts said it would accept feedback on the proposal until Feb 5 with potential inclusion in the benchmark for cargoes loading March 2022.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
"We welcome feedback from market participants on the proposal ... including any comments on a potential quality premium, timing of implementation and the associated logistics,"said Joel Hanley, Head of Crude Oil Pricing.
Platts last year started reflecting WTI trades in northwestern Europe in its daily market-on-close trading window alongside the established five dated Brent crude oil streams.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
BHP’s biggest rivals sit on the sidelines of Anglo M&A drama
ExxonMobil to take 18 to 24 months to hit full stride with Pioneer purchase
Oil settles down on US jobs data, steepest weekly loss in three months
Glencore Group nears deal for Shell’s Singapore oil refinery
Opec+ may need to tackle oil capacity conundrum next month
Gold flat ahead of US payrolls data, set for second weekly drop