21 Feb New grade added to Brent crude oil benchmark
S&P Global Platts plans to overhaul its current Brent crude oil benchmark for the first time in a decade, with the addition of Norway’s Troll grade oil in January 2018.
Norway’s Troll crude will be added to the four existing crudes that comprise the oil pricing agency’s Brent benchmark, known as BFOE – Brent, Forties, Oseberg and Ekofisk.
Platts’ BFOE assessment is used as the baseline price for many international state-run oil producers, and with the addition of Norway Troll, which pumped more than 200,000 barrels each day last year, around 20% more barrels will be included in the benchmark.
These changes have been planned as supplies from the North Sea are expected to drop, which has led to concerns over volumes thinning out in the region.
Jonty Rushforth, global editorial director at S&P Global Platts said: “Dated Brent is a robust and well-supplied crude benchmark, but it is important to prepare for the future, in particular, the expected decline in North Sea production and the changing quality of the whole crude slate.”
The addition of Norway Troll crude is the first addition to Platts’ light crude oil benchmark since Ekofisk was introduced in 2007.