Tag Archives: brent

Platts revamps Brent oil benchmark for first time in a decade | Reuters

Oil pricing agency S&P Global Platts is making the first major overhaul of its Brent oil price assessment in a decade, to address falling supplies of the crude oil grades underpinning the benchmark that prices most of the world’s oil.A decline in supply from North Sea fields has led to concerns that physical volumes could become too thin and hence at times could be accumulated in the hands of just a few players, making the benchmark vulnerable to manipulation.Platts said on Monday it would add Norway’s Troll to the basket of four British and Norwegian crude grades which it already uses to assess dated Brent from Jan 1. 2018. This will join Brent, Forties, Oseberg and Ekofisk, or BFOE as they are known.”Overall we have had significant support for the addition of a new grade to the basket,” Jonty Rushforth, global editorial director for S&P Platts Global’s oil and shipping price group, said at an industry conference.”Far and away, Troll has received the most support.”Troll will add about 200,000 barrels per day, or 20 percent, to the basket of crude supplies underpinning the benchmark, Platts said. The move was in line with expectations after Platts said in December it was being considered.Brent is used to set the price of billions of dollars of daily oil trade though a forward market for BFOE crude cargoes, swaps markets, physical benchmark dated Brent and Brent crude futures.

Source: Platts revamps Brent oil benchmark for first time in a decade | Reuters

Oil Trades Near $50 as Europe Economic Data Counters Iraq Demand – Bloomberg

Oil traded near $50 as better-than-expected economic data in Europe countered Iraq’s demand that OPEC should exempt it from planned output cuts.Prices rose as much as 0.3 percent in New York. A Purchasing Managers’ Index for manufacturing and services in the euro zone rose to 53.7 in October, the fastest pace since the beginning of this year, IHS Markit said on Monday. Iraq should be exempted from trimming production because it’s embroiled in a war with Islamic militants, Oil Minister Jabbar Al-Luaibi said Sunday in Baghdad. Rigs targeting crude in the U.S. rose for an eighth week, according to Baker Hughes Inc.

Source: Oil Trades Near $50 as Europe Economic Data Counters Iraq Demand – Bloomberg