Platts revamps Brent oil benchmark for first time in a decade

Oil pricing agency S&P Global Platts is making the first major overhaul of its Brent oil price assessment in a decade, to address falling supplies of the crude oil grades underpinning the benchmark that prices most of the world's oil. A decline in supply from North Sea fields has led to concerns that physical volumes could become too thin and hence at times could be accumulated in the hands of just a few players, making the benchmark vulnerable to manipulation.
Platts said on Monday it would add Norway's Troll to the basket of four British and Norwegian crude grades which it already uses to assess dated Brent from January 1. 2018. This will join Brent, Forties, Oseberg and Ekofisk, or BFOE as they are known. "Overall we have had significant support for the addition of a new grade to the basket," Jonty Rushforth, global editorial director for S&P Platts Global's oil and shipping price group, said at an industry conference.
"Far and away, Troll has received the most support." Troll will add about 200,000 barrels per day, or 20 percent, to the basket of crude supplies underpinning the benchmark, Platts said. The move was in line with expectations after Platts said in December it was being considered.