In change for oil market, new US crude in Brent index lacks loading plan

The industry is used to utilizing cargo load lists to estimate supplies, but the U.S. crude oil being added to the global Brent benchmark will not have one.

S&P Global Platts is adding U.S. WTI Midland crude to its June Brent oil price assessment, which is now in focus as the market trades about a month ahead.

Dated Brent, together with physical cargoes, swaps, and futures, prices millions of barrels of oil daily. It was previously based on five British and Norwegian North Sea crudes.

The sector uses anticipated cargo loading lists from North Sea crude stream operators to gauge supply. This week, five North Sea crudes received June programmes.

In September, Platts warned customers that U.S. Gulf Coast terminals may not be able to provide month-ahead loading schedules. Terminals should advise the market of planned maintenance and large interruptions and disclose their usual monthly cargo slot allocation.

On Thursday, the business told Reuters it didn’t expect any issues since the market had been preparing for the changes for months and players had notified Platts they were comfortable with the process.

“We see no reason for issues,” said Joel Hanley, global director, crude and fuel oil, at S&P Global Commodity Insights.

“With increasing real-time tools in ship tracking, supply chains, and flow data and the transparency that price assessments bring, we believe the marketplace has more information about supplies and flows than ever before.”

Oil traders claimed there is no WTI Midland program because U.S. crude has several operators and ports can deliver cargoes. 11 Gulf Coast terminals will deliver WTI Midland to Platts.

Last month, trading veterans Adi Imsirovic and Kurt Chapman stated that “generally, U.S. Gulf terminals do not have a right to publish loading dates” unless instructed by cargo owners.

A North Sea trader said the lack of a WTI Midland loading plan could make trading harder, but he expected loading dates to be announced.

Tanker-tracking data suggests big European WTI Midland imports. Kpler reported 1.25 million barrels per day of European exports in March, more than the other five Brent grades combined.

Thomson Reuters competes with S&P Global Platts in oil market news and data.