Oil markets participants urged to reform Brent
Ian Taylor, head of Vitol world oil trading company, has urged to implement serious and urgent reforms to revise the components of the contract of Brent oil brand.
The statement has been made at the International Petroleum Week recently started in London. Every year the conference gathers together leading participants of the oil market.
Taylor, whose opinion is shared by many experts and participants of the oil market, believes that objective decline of production of the North Sea oil brands included into Brent, such as Brent, Forties, Oseberg and Ekofisk, makes it doubt as to adequacy of the brand as the world leading indicator at the oil market.
Jorje Montepeke, Director of the Market Study Department of Platts analytical agency, share this opinion as well. He believes that Brent and WTI oils have actually turned into brands, but they are a combination of several types of oil. Montepeke said that change of oil production volume and geography of deliveries will finally force to revise the market oil prices. He added that the issue of adding other types of oil into Brent composition has been urgent for a long time.—0—