Platts Changes Course on Change to Dated Brent Crude Benchmark

by Ship & Bunker News Team
Thursday March 11, 2021

Price reporting agency S&P Global Platts has postponed a proposed change to its Dated Brent crude oil benchmark after criticism over the impact it might have.

The company had previously announced plans to convert the benchmark into an assessment of crude deliveries in Rotterdam from June 2022, including US crude grade WTI, where previously it had reflected loadings at North Sea terminals.

Platts is now inviting 'further consultation' on the plan, it said in a statement on its website on Wednesday.

"Since changes to the complex were announced in February, we received extensive feedback from market participants in support of introducing WTI Midland into the basket but there is not agreement on how it would be fully reflected into the wider Brent complex," the company said.

"We have listened to this feedback and believe the best route forward is to defer changes to the core FOB Dated Brent complex and to keep Dated Brent and all related assessments, including Cash BFOE unchanged on an FOB basis.

"This allows the opportunity for a widespread consultation with market participants so that we act on constructive suggestions to safeguard the future of the benchmark."

Rival price reporting agency Argus Media had suggested the change threatened to introduce a disconnect between the Dated Brent assessment and ICE Brent futures.

Ship & Bunker News Team
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