SINGAPORE, Sept. 23, 2018 /PRNewswire/ -- S&P Global Platts, the leading independent provider of information and benchmark prices for the commodities and energy markets, today announced that it is opening a consultation on the future development of the Dated Brent price assessment. S&P Global Platts invites feedback to the proposals below by December 10, 2018.
Vera Blei, Global Director of Oil Market Reporting, S&P Global Platts, said: "We are proud at Platts of the proactive leadership role we have long played in helping evolve the Brent benchmark so that it is in step with the times. Our proposal to reflect competitive offers of North Sea crudes on a delivered basis to Rotterdam reflects the reality that the North Sea market is now balanced between FOB production, stored oil and oil on the water for delivery to receiving terminals. By allowing BFOE crudes being offered for delivery to play a role in the Dated Brent benchmark, we are potentially more than doubling the total overall volume of the basket underpinning the world's most important crude oil benchmark."
Jonty Rushforth, Global Editorial Director, Energy Price Group, S&P Global Platts, said: "Dated Brent is the most widely used and robust benchmark for physical crude oil. A key part of our active stewardship of the benchmark is to continue to engage extensively to safeguard Dated Brent and ensure the benchmark evolves to remain robust, well supplied and relevant to all market participants for the next decade and beyond. This means listening to a varied group of stakeholders - producers, refiners, trading houses ? who express differing views and recommend a way forward. The addition of Troll and the recently announced Quality Premium together with the launch of Dated Brent CIF Rotterdam assessment have been well received by the market. Our proposals outlined in this consultation will ensure ample liquidity of similar grades delivered into Dated Brent for the foreseeable future."
S&P Global Platts has been working with market participants on the evolution of North Sea crude since its creation over 30 years ago and regularly holds open methodology sessions and forums to engage with market participants in person.
In March 2016, S&P Global began publishing the Dated Brent CIF Rotterdam new price assessment of North Sea light sweet crude on a delivered basis into Rotterdam to complement the Dated Brent Free-On-Board (FOB) benchmark. In January 2018, Platts successfully added Troll as the latest addition of crude grade in the Dated Brent basket.
Currently, around a quarter of crude flowing into Rotterdam, one of the world's key crude import hubs, comes from the North Sea, another quarter comes from the Baltic region, and about a fifth from the Middle East. The Dated Brent CIF Rotterdam assessment reflects the value of BFOE delivered into Rotterdam on a Cost, Insurance and Freight basis. It is a crucial tool to provide pricing visibility on the value of North Sea crude in an important oil hub.
Market participants are invited to send feedback to [email protected] and [email protected].
About S&P Global Platts
At S&P Global Platts, we provide the insights; you make better informed trading and business decisions with confidence. We're the leading independent provider of information and benchmark prices for the commodities and energy markets. Customers in over 150 countries look to our expertise in news, pricing and analytics to deliver greater transparency and efficiency to markets. S&P Global Platts coverage includes oil and gas, power, petrochemicals, metals, agriculture and shipping.
S&P Global Platts is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies and governments to make decisions with confidence. For more information, visit www.platts.com.
SOURCE S&P Global Platts
These press releases may also interest you
|