Home Investing News Platts says adding Midland to Brent has gone well, no need for more

Platts says adding Midland to Brent has gone well, no need for more


Platts says adding Midland to Brent has gone well, no need for more By Reuters

Breaking News



Published Feb 26, 2024 06:06AM ET
Updated Feb 26, 2024 06:32AM ET

© Reuters.

By Robert Harvey and Alex Lawler

LONDON (Reuters) – Commodities pricing agency Platts said on Monday its addition of U.S. WTI Midland crude into the global Brent oil benchmark has gone well, and it won’t be necessary to add any further crudes for the time being.

Platts, part of S&P Global Commodity Insights, added Midland to its dated Brent price assessment in May 2023, bolstering volumes underpinning the benchmark amid diminishing output of the five North Sea grades, Brent, Forties, Oseberg, Ekofisk and Troll.

The integration of Midland has gone “smoothly,” Vera Blei, head of Established Benchmarks at S&P Global Commodity Insights, told the company’s London Energy Forum on Monday.

“Midland coming into dated Brent has added a significant amount of volume with a grade that was already established in Europe,” she said.

The volumes Midland brings to the benchmark should future proof it for the next decade or so, Blei said, but the company did not rule out future additions.

Platts has learned by adding Midland that it is possible to expand the benchmark using crude from outside the North Sea, she said when asked if any more additions were being planned.

“This is a long undertaking,” she said. “We can introduce a grade from outside of the North Sea successfully if we have to.”

The Midland addition serves “to really futureproof this for the next decade,” she added. “It doesn’t mean we won’t be looking at new grades as and when that becomes necessary.”

The addition of Midland has helped bring new counterparties to the North Sea benchmark trading environment, Blei said, including U.S. oil company Occidental (NYSE:OXY) and Saudi Aramco (TADAWUL:2222).

Platts says adding Midland to Brent has gone well, no need for more

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Related News