Differences

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--- 0_public:benchmark:brent [2024/12/09 21:43] – ↷ Page moved from benchmark:brent to 0_public:benchmark:brent pointnm
+++ 0_public:benchmark:brent [2024/12/20 20:10] (current) – [WTI Addition] pointnm
@@ Line 21: / Line 21: @@
 There are still, however, some issues hindering the new benchmark, said Chapman. Those include problems such as timing of delivery window, inconsistency in quality, distortions in freight adjustment, or poor enforcement of terminal compliance in the US Gulf.((https://archive.ph/RnJgq#selection-1989.0-1989.258))
-===== WTI Addition =====
+==== WTI Addition ====
 Liquidity in Brent complex has surged since WTI Midland added((https://archive.ph/RnJgq#selection-1341.0-1341.61))
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 Having plenty of crude to trade is vital for Brent, which is a <wrap hi>benchmark for more than two thirds of the world’s physical crude transactions</wrap>. Despite continuous efforts to add new grades into the pricing basket, the measure had been facing a steady decline in North Sea production, reducing its reliability. Platts sought to address that with several overhauls, including one that was aborted following trader pushback. Now those concerns are fading into memory.((https://archive.ph/RnJgq#selection-1621.0-1621.462))
+The inclusion of WTI Midland crude in the dated Brent index has meant that the spread between the two is increasingly correlated to freight rates, as the price of Dated Brent is set by WTI Midland on many trading days.((https://archive.ph/Hzzsa#selection-8137.0-8140.0))
 ===== Brent DFL =====
 Additionally, the Brent DFL — a measure of Dated Brent relative to Brent futures — has turned negative, a sign of weakness in the physical oil market.((https://archive.ph/0sC5t#selection-1663.177-1669.48))