BP said the world’s most important oil benchmark was experiencing ‘regular dislocations,’ in the harshest criticism ever by an oil major about how the price of Brent crude is calculated.
Platts, the commodities price-reporting agency, may decide soon after Oct. 30 to make changes to the formula of the benchmark for much of the Middle Eastern crude sold to Asia as it seeks to stay competitive with China planning to introduce its own contract.
The agency is considering adding two crudes to the three grades it uses in calculating the Dubai oil benchmark, which determines prices for almost 30 million barrels a day in exports to Asia, said Dave Ernsberger, its global editorial director for oil.
Platts seeks to ensure liquidity amid rising demand from Asia, especially China, which plans to introduce a futures contract this year.
