The role of benchmark crudes in crude oil pricing
- International Petroleum Exchange, London (United Kingdom)
Most of the world`s oil, whether sold on a spot basis or as part of a term contract, will be priced on a relationship with one or other of a small number of marker crude oils. Generally, the markers used are West Texas Intermediate (WTI) and Alaskan North Slope (ANS) for crude oil coming into North and South America; Dubai or Oman for crudes being delivered into the Far Eastern markets; and Brent for any crude being delivered into Europe. For a variety of reasons, over the laster two years, Brent blend has become more predominant in the pricing process for crude oils throughout the world. This has resulted in the fact that, directly or indirectly, Brent is now used to price approximately 65% of the world`s crude oil. So why is it that a crude oil with a comparatively small production base of around 700,000 barrels per day has now come to dominate the pricing of the lion`s share of the world`s crude oil? The answer to this question is discussed.
- Research Organization:
- East-West Center, Honolulu, HI (United States). Program on Resources: Energy and Minerals
- OSTI ID:
- 121217
- Report Number(s):
- CONF-9309209-; ON: DE95014708; TRN: 95:023948
- Resource Relation:
- Conference: 2. Interamerican petroleum and gas conference, Dallas, TX (United States), 27 Sep 1993; Other Information: PBD: [1993]; Related Information: Is Part Of Proceedings of the 1993 InterAmerican Petroleum and Gas Conference; PB: 459 p.
- Country of Publication:
- United States
- Language:
- English
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