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Free AccessWTI Midland to Assume Key Role in Dated Brent Price
The inclusion of WTI Midland crude in the Dated Brent oil price assessment from June is set to assume a key role in the benchmark according to Reuters. Midland has been added due to the long term decline in supply of the five North Sea crudes.
- The WTI-Brent spread narrowed from around -6$/bbl in March to above -4$/bbl as the forward contract rolled into June. The spread has closed to around -3.4$/bbl today.
- Brent is used to price over three-quarters of the world's traded oil and could be more influenced by US fundamentals such as SPR releases and Permian production.
- Crude deliveries from US WTI Midland to Europe have increased to replace missing Russian crude according to Kpler data. In March, WTI Midland exports to Europe at 1.25mbpd were greater than the other five dated Brent grades combined.
- Dated Brent is set by the cheapest of the crudes in the basket. If WTI Midland had been a part of the Brent benchmark in 2021, it would have set the price about 68% of the time according to Argus.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.