• 15 mins Is A Russia-Cuba Energy Deal In The Works?
  • 3 days Iraq Begins To Rebuild Largest Refinery
  • 3 days Canadian Producers Struggle To Find Transport Oil Cargo
  • 3 days Venezuela’s PDVSA Makes $539M Interest Payments On Bonds
  • 3 days China's CNPC Considers Taking Over South Pars Gas Field
  • 3 days BP To Invest $200 Million In Solar
  • 3 days Tesla Opens New Showroom In NYC
  • 3 days Petrobras CEO Hints At New Partner In Oil-Rich Campos Basin
  • 3 days Venezuela Sells Oil Refinery Stake To Cuba
  • 3 days Tesla Is “Headed For A Brick Wall”
  • 4 days Norwegian Pension Fund Set to Divest From Oil Sands and Coal Ventures
  • 4 days IEA: “2018 Might Not Be Quite So Happy For OPEC Producers”
  • 4 days Goldman Bullish On Oil Markets
  • 4 days OPEC Member Nigeria To Issue Africa’s First Sovereign Green Bond
  • 4 days Nigeria To Spend $1B Of Oil Money Fighting Boko Haram
  • 4 days Syria Aims To Begin Offshore Gas Exploration In 2019
  • 4 days Australian Watchdog Blocks BP Fuel Station Acquisition
  • 4 days Colombia Boosts Oil & Gas Investment
  • 5 days Environmentalists Rev Up Anti-Keystone XL Angst Amongst Landowners
  • 5 days Venezuelan Default Swap Bonds At 19.25 Cents On The Dollar
  • 5 days Aramco On The Hunt For IPO Global Coordinators
  • 5 days ADNOC Distribution Jumps 16% At Market Debut In UAE
  • 5 days India Feels the Pinch As Oil Prices Rise
  • 5 days Aramco Announces $40 Billion Investment Program
  • 5 days Top Insurer Axa To Exit Oil Sands
  • 6 days API Reports Huge Crude Draw
  • 6 days Venezuela “Can’t Even Write A Check For $21.5M Dollars.”
  • 6 days EIA Lowers 2018 Oil Demand Growth Estimates By 40,000 Bpd
  • 6 days Trump Set To Open Atlantic Coast To Oil, Gas Drilling
  • 6 days Norway’s Oil And Gas Investment To Drop For Fourth Consecutive Year
  • 6 days Saudis Plan To Hike Gasoline Prices By 80% In January
  • 6 days Exxon To Start Reporting On Climate Change Effect
  • 7 days US Geological Survey To Reevaluate Bakken Oil Reserves
  • 7 days Brazil Cuts Local Content Requirements to Attract Oil Investors
  • 7 days Forties Pipeline Could Remain Shuttered For Weeks
  • 7 days Desjardins Ends Energy Loan Moratorium
  • 7 days ADNOC Distribution IPO Valuation Could Be Lesson For Aramco
  • 7 days Russia May Turn To Cryptocurrencies For Oil Trade
  • 7 days Iraq-Iran Oil Swap Deal To Run For 1 Year
  • 10 days Venezuelan Crude Exports To U.S. Fall To 15-year Lows
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Shell Suggests Adding Russia’s Urals Grade To Brent Benchmark

Offshore

Royal Dutch Shell is calling upon S&P Global Platts to consider including Russia’s Urals crude grade in the price assessment of the Dated Brent benchmark, to protect it from huge price swings amid falling North Sea supplies.

“A good benchmark need not only be representative of what the region produces ... If you had to pick one grade of crude, Urals is the one which northwest European refineries should be designed to run optimally,” Mike Muller, Vice President Global Crude Oil Trading & Supply at Shell, said at the Platts Crude Summit in London on Wednesday, as quoted by Reuters.

The benchmark currently comprises Brent, Forties, Oseberg, and Ekofisk, known as BFOE.

Shell, one of the world’s top crude oil traders, is now making a U-turn from two years ago when it had said that adding the Urals grade in the Brent benchmark would not be “worth the trouble”.

At today’s event, Muller’s suggestion pointed to Shell’s intent to see reforms in the benchmark.

“These are the sort of things Shell wishes to see in benchmarks going forward,” Bloomberg quoted Muller as saying.

In February this year, S&P Global Platts said that starting from January 2018, it would include Norway’s Troll crude grade in the Brent basket—a first such addition since 2007—in a bid to ensure that there will be sufficient deliverable North Sea crude reflected in the price assessments.

When production from the namesake Brent field declined, Platts added Forties and Oseberg in 2002 and Ekofisk in 2007 to the price assessment.

Related: Oil Below $65 Per Barrel…For Years

Although production in the North Sea has stabilized now, the four grades in the BFOE basket are likely to decline further, and therefore, Platts “believes it is time to add another grade to the basket to ensure there is sufficient deliverable crude reflected in the price assessments,” it said back then.

Now Shell believes more grades must be added in pricing the Brent in the next two to three years, and Russia’s medium sour Urals would be a top contender.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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