Platts considers adding new grades to Brent basket

My FX Forum

Staff member
Leading independent information provider S&P Global Platts is looking forward to further extension of Brent, a key benchmark in global oil markets. It is going to face major adjustments in the near future. Platts considers adding new grades from Central Asia, West Africa and North America to the Brent crude.

The major provider of data on benchmark prices for the energy and commodities markets suggests two key changes to the Brent price assessment.

The first one is to include in the calculation not only the price but also costs of delivery to Rotterdam. The second change concerns inclusion to the Brent basket of oil grades outside the North Sea extraction area as well as ones supplied to Rotterdam.

Experts believe this is the turning point in the North Sea Benchmark’s history. “Against the backdrop of changing global crude oil flows where we see more crude being delivered across the Atlantic basin from different locations including the US and the falling production of North Sea crude itself, the time is right to put forward specific, detailed and timely proposals for changes like this,” specialists said. The agency offered to look upon such oil benchmarks as Statfjord, Gullfaks (the North Sea), CPC Blend (Central Asia), WTI Midland (the US), Qua Iboe and Forcados (West Africa) as possible options to top up the Brent blend.

The S&P Global Platts specialists are opened to conversation with market key players and awaiting feedback on their proposals until December 10, 2018.