Oil, challenge to the WTI: new price indices for shale oil are underway

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Serviceafter the sub-zero splash

After the wti collapse below zero, the war of the benchmarks starts: S&P Global Platts and Argus Media simultaneously launched two new references, promising that they will better reflect the prices of oil “made in the USA”

by Sissi Bellomo

(EPA)

After the wti collapse below zero, the war of the benchmarks starts: S&P Global Platts and Argus Media simultaneously launched two new references, promising that they will better reflect the prices of oil “made in the USA”

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The assault on the WTI has started. Two months after the “made in the USA” oil slides below zero, which has raised many controversies among operators, two benchmark alternatives debuted simultaneously on June 26, both with the promise of reflect the prices of shale oil more faithfully and reliably and more generally of US crude oil destined for export: volumes that now exceed 3 million barrels per day.

To launch the new references – in open challenge to the Cme Group, which controls Nymex – are S&P Global Platts is Argus Media: Companies that already publish price lists and indices referring to dozens of energy and non-energy products.

Platts in particular for years, based on physical exchanges in the North Sea, has determined the value of

Brent Dated
: a benchmark on which two thirds of the cargoes of crude oil sold in the world are priced.

«Even the US market finally will have his Brent», Said Vera Blei, Global director of oil of the company controlled by Standard & Poors’, specifying that the Platts American GulfCoast Select (Ags) “will reflect the value of US crude oil that is at sea, connected to international markets and free from the distortions of the economy of domestic infrastructure”.

The allusion is to Cushing terminal, the WTI delivery point, in Oklahoma, 800 km away from the Midlands, where the heart of shale oil production lies. It was precisely the exhaustion of the storage spaces in Cushing that had negated the WTI quotations on 20 April: an “accident” paid dearly by the frackers, forced to sell oil at a discount compared to the value of that benchmark.



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https://www.ilsole24ore.com/art/petrolio-sfida-wti-via-nuovi-indici-prezzo-lo-shale-oil-ADqLaoa

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