The status of Brent as a benchmark for the oil market is shifting

The status of Brent as a benchmark for the oil market is shifting

Moscow. February 9. The Platts takes steps to protect Brent as a benchmark for the oil market from the effects of declining production in the North sea, writes Financial Times.

To do this, Platts is looking for ways to improve the liquidity of the Brent. Previously considered options for adding new varieties of oil, for example, Norwegian or Danish part of the Deposit or Troll Russian Urals.

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Brent contracts used by traders and oil producers as a marker of the value of two thirds of the physical crude oil traded on the world markets. In addition, they are futures, options and other derivatives on billions of dollars.

In fact, Brent is a mixture of several grades of oil produced on offshore mestorozhdeniyakh Brent, Forties, Oseberg and Ekofisk (BFOE) in the North sea. The production on all these deposits are reduced.

Platts captures oil prices on a daily basis, using buy orders and sell linked to BFOE. According to the Agency, the supply of North sea oil will be reduced from 53 loads (each load is about 600 thousand barrels) per month in 2015 to 38 per month in 2020 and 20 per month in 2025.

However, in the case of preservation of extremely low oil prices, production will fall even faster. Analysts do not exclude that in 2016 up to 50 oil and gas fields in the North sea will be forced to cut production.

Platts on Monday presented a plan to create a new valuation BFOE streams for delivery to Rotterdam, including the cost of freight and transportation. According to experts of Agency, in a new system if necessary, you can add other types of oil, including from Africa or the Middle East.

At the moment, a quarter of the oil passing through the terminals of Rotterdam, comes from North sea fields, and another quarter from the Middle East, about 20 per cent from the Baltic States.

The new assessment system will be used on March 14.

On Tuesday in London kicks off international petroleum week (IP Week) is one of the Central events in the industry. Offers Platts can be the center of attention of the participants, notes FT.

Platts is an independent information Agency of the USA in the composition of the media holding McGraw-Hill Companies, already more than a hundred years, is the largest and one of the most authoritative sources of information about the energy industry, services, marketing and energy analysis of the.

In particular, the reference prices published by the Agency, are used to determine purchase prices of crude oil for the refinery, diesel fuel and gasoline for distribution companies. According to estimates France’s Total, more than 80% of the world deals with energy in one form or another are based on the Platts information, including for oil – 95%, oil – 90%.