off-the-wire

North Sea Crude-BP makes first WTI offer after grade joins Brent benchmark

Kitco Media
By Reuters
Published:
Updated:
Reuters
LONDON, May 2 (Reuters) - BP made the first offer of WTI Midland crude in the Platts trading window after it became included in the dated Brent benchmark, a trade source said on Tuesday. Texas crude is set to assume a key role in the world's most important benchmark - Brent - as oil-index publisher S&P Global Platts adds U.S. WTI Midland crude to its dated Brent oil price assessment for June deliveries.


Platts said earlier on Tuesday it began reflecting WTI Midland as part of the dated Brent basket.


PLATTS WINDOW
* Indications are on a free-on-board (FOB) basis unless marked as cost, insurance and freight (CIF) or delivered at place (DAP).
* WTI Midland: BP offered a June 1-5 cargo on a CIF Rotterdam basis at dated Brent plus $1.45, a source said.
* Even though the offer is on a CIF basis, this is the same differential as the latest Refinitiv FOB value for Brent crude and 5 cents more than that for Forties, suggesting a competitive value for the U.S. crude against the North Sea grades in the Brent basket.
* No other price indications and no deals, a trade source said. (Reporting by Alex Lawler, Editing by Alexander Smith)

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