• 4 minutes Nord Stream 2 Halt Possible Over Navalny Poisoning
  • 8 minutes America Could Go Fully Electric Right Now
  • 11 minutes JP Morgan says investors should prepare for rising odds of Trump win
  • 1 day Daniel Yergin Book is a Reality Check on Energy
  • 2 days Permian in for Prosperous and Bright Future
  • 4 hours US after 4 more years of Trump?
  • 2 days Famine, Economic Collapse of China on the Horizon?
  • 2 days Oil giants partner with environmental group to track Permian Basin's methane emissions
  • 2 days YPF to redeploy rigs in Vaca Muerta on export potential
  • 5 hours Something wicked this way comes
  • 2 hours Why NG falling n crude up?
  • 2 days Gepthermal fracking: how to confuse a greenie
  • 2 days Top HHS official takes leave of absence after Facebook rant about CDC conspiracies
  • 4 hours The Perfect Solution To Remove Conflict Problems In The South China East Asia Sea
  • 1 day Open letter from Politico about US-russian relations
  • 4 days Surviving without coal is a challenge!!

The Battle For The World’s Top Oil Benchmark

Many countries would like to have their own crude grades as international benchmarks that others would price their volumes against, however, only very few countries can boast of such a thing. Brent is the leading world benchmark, the first one to get all the letters in what we should call hereafter MAST (movability, availability, scope and transparency). It was moveable across the planet due to its seaborne location and easy access to export infrastructure, it was available because the governments of United Kingdom and Norway guaranteed their non-interference in the companies’ system of operation, it was plentiful because North Sea production was one of the dominant forces in European production growth and it was transparent because relevant companies thought having a retraceable baseline was too noble a cause not to share information about concluded deals.

Throughout the last decades Brent has undergone lots of changes – from being used as a single-source benchmark, it has grown to include first Oseberg and Forties in 2002, then Ekofisk in 2007 and Troll in 2018, all the while battling difficult structural issues such as irrevocable production declines and dropping numbers of reported trade deals in BFOE physical cargoes. Thus, both the scope and transparency elements suffered heavily amidst reoccurring calls for a thorough reform of the benchmarking system. They were, it has to be said, completely legitimate as the whole BFOE basket went from 55.33 million…




Oilprice - The No. 1 Source for Oil & Energy News