EMEA News
Benchmark Change Sparks Debate at London's IE Week
Proposals from price reporting agency S&P Global Platts to change the make up of the Brent oil price benchmark came under the spotlight at the Argus Oil Markets Forum 2022 in London today.
Dated Brent, which is the industry standard for pricing crude oil, has come under increasing pressure as cargo volume from the North Sea oilfields shrinks.
To counter the lack of volume, Platts is proposing to include WTI cargoes as part of its Brent assessments.
A key plank in Brent's longevity as a standard oil price benchmark is the transparency of its loading schedules.
In contrast, loading schedules in the US Gulf are said not to be readily available for public scrutiny, the forum was told.
According to Argus data, including WTI cargoes in the Brent benchmark would have produced a lower Brent assessment overall compared to what had been the case.
The price differential between Brent with WTI and Brent without WTI would still apply (although it would not be as great) if only 40% of WTI cargoes were included in any new Brent assessment, as Platts is proposing, the forum heard.
Any decision on the future shape of the Brent oil price benchmark would not happen until next year. Both Platts and Argus Media offer price reporting services to the oil and other commodity sectors.
