Platts will add US WTI crude to the dated Brent benchmark

By Alex Lawler and Dmitri Zhdannikov

LONDON (Reuters) – S&P Global Platts has decided to include U.S. West Texas Intermediate (WTI) Midland crude in its dated assessment of Brent oil prices, the first non-North Sea crude to be added to the global benchmark, the company said on Months.

WTI will be reflected in July 2022 dated Brent commodity deliveries and the reference basis will be changed to a delivery basis, Platts head of oil market price reporting Vera Blei said during an online conference call.

The US crude will join the five existing British and Norwegian crudes – Brent, Forties, Oseberg, Ekofisk and Troll – that make up the dated Brent basket, increasing supply that underpins the benchmark used in oil trading around the world.

“These changes provide significant additional volume and will ensure the continued robustness of the Brent complex for the next decade and beyond,” said Blei.

North Sea oil production is declining, which has made the inclusion of an increasing number of streams necessary over the years from the original Brent field. WTI Midland is the first non-North Sea grade to be added.

The move was welcomed by US exchange operator CME Group, the home exchange for WTI futures and options trading.

“CME Group welcomes the addition of US crude to the Brent benchmark, which recognizes the importance of US crude in the global market,” said Owain Johnson, head of research and product development at CME Group.

Production of the five crudes underlying Brent has fallen and is often below 1 million bpd, less than 1% of global supply.

Platts said the inclusion of WTI Midland should add about 500,000 bpd, and WTI Midland has become an essential part of the North Sea market with similar characteristics to the existing five classes.

Reuters competes with Platts in providing news and price information about the oil market.

(Edited by Edmund Blair and David Evans)