The introduction of Quality Premiums offers an incentive for more deliveries of Oseberg and Ekofisk, and thus has the potential to further gird the supply of oil underpinning the BFOE complex and the Dated Brent price assessment," said Dave Ernsberger, Platts global editorial director, oil.
BFOE is the name used for the Brent-Forties-Oseberg-Ekofisk oil complex.
The strength in Urals is all the more remarkable given the well documented local supply issues that are distorting the BFOE
market in August and September.
2-6 assessed at 13 cents above September BFOE
, compared with a 2-cent discount Monday, a broker said.
It also does not contain details of the environmental impact, which BFoE
claims is a glaring omission.
And because Forties, which is generally the cheapest of the four grades due to quality differences, usually sets the Dated Brent price, it is the most influential grade of crude oil in the BFOE market.
The ownership stake in Buzzard will give CNOOC equity cargoes of Forties, allowing it to actively trade in the so-called 25-day BFOE forward market that sets the Dated Brent price.
Platts said it would apply quality premiums for Oseberg and Ekofisk crude delivered into BFOE
forward contracts that help establish the Brent price from June 2013.
Panna Amliwala, who helped co-ordinate the event for BFOE
, said: "Choosing sustainable travel is an important hot button topic and we would like to encourage more organisations to help employees and customers with the options they have, as Aston Villa have done.
35 in the Mediterranean over the past week, while the crack to dated BFOE
fell more moderately to about minus $7 a barrel from minus $5.
It does not replace Argus' existing North Sea Dated benchmark, against which many crudes are priced worldwide, but provides a supplementary assessment to the market that is representative of the full basket of BFOE
Another possible idea would be to set the Dated price according to an average of North Sea BFOE
grade values, modified by fixed differentials in the 21-day contract.