Plans for the most significant Crude Oil overhaul in decades are being put on hold. The overhaul has been on how the international oil process is measured. It has been put on hold as to objections over how to treat the shipping costs. The assessments of Brent crude were going to include prices of Texas oil. Brent crude is the benchmark underpinning the world’s most important commodity market starting from July 2022.
Platts publishes daily the price of physical crude oil in Europe’s North Sea. The benchmark has faced a significant problem. For years now, Brent’s production and four other grades of crude in the North Sea have declined. The American Energy Industry was revived by the European refiners who shifted to becoming large buyers of U.S. Crude Oil. The European refiners are importing more than a million barrels a day.
In late February, Platts said that it would incorporate West Texas Intermediate Midland oil from Texas into the crudes’ basket. The delay announced on Wednesday marks a sudden reversal by the commodities data provider. The leading cause for delay is the objections raised by traders on how Platts handled the freight costs as a part of the shake-up.