11 Mar 2024 | 16:29 UTC

WTI Midland establishes itself in Dated Brent basket, now traded over 100 times in Platts MOC

Highlights

WTI Midland continues to broaden involvement in price formation through Platts MOC

104 WTI Midland cargoes traded in Dated Brent MOC over May 2023 - February 2024

Full performance reached on 83 WTI Midland trades delivered over June 2023 - February 2024

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Ten months on since WTI Midland's initial inclusion in the Dated Brent basket in May 2023, the grade has now firmly established itself, trading over 100 times in the Platts Market on Close assessment process.

Platts, part of S&P Global Commodity Insights, continues to closely monitor performance on all these trades for transparency purposes and post deal tracking has revealed full performance eventually reached on all trades tracked to date with February proving the most liquidity traded month on record.

Pricing

WTI Midland continued to play a role in defining the price of Dated Brent through February, most commonly demonstrating value in the basket as the most competitive grade, according to S&P Global data.

This reflects shifting European crude fundamentals early in the year and follows WTI Midland playing its smallest role in defining Dated Brent on record through January where it was on average the most competitive grade across 27% of assessment days.

Exceptionally strong demand for North Sea Forties across February and March loading cargoes underpinned in its surge in Platts-assessed differentials to 18-month highs of $2.335/b above Dated Brent late in the month, increasing the relative competitiveness of WTI Midland in the basket.

Meanwhile, WTI Midland differentials sank in the second half of February reflecting growing light sweet availability in Europe late in the trading cycle as market tightness observed through January waned.

Liquidity

Nine months on from its initial inclusion in the Dated Brent basket, WTI Midland continues to broaden participation in price discovery through the Platts Market on Close assessment process. Saudi Arabia's Aramco and Azerbaijan's SOCAR both sold cargoes in the MOC for the first time since WTI Midland's inclusion in February, with all three bought by TotalEnergies.

Bolstered by the new participants, WTI Midland liquidity remained robust through February with 18 cargoes trading in the Platts MOC. February was subsequently the strongest month on record for WTI Midland liquidity, topping the 17 trades recorded in the MOC through July 2023.

Elsewhere, participation remained active across other crudes in the Dated Brent basket with two North Sea Forties cargoes and an Ekofisk cargo also trading in addition to the usual plurality of bids and offers demonstrating value across the different grades in the basket.

Performance Tracking

Platts monitored performance on 83 WTI Midland CIF Rotterdam trades published in the Platts Dated Brent MOC process from May 2023 through January 2024. This post-deal tracking enables Platts to determine the actual performance of the participants in the trades and the validity of their inputs.

As part of this, Platts has reviewed various aspects of performance, including timeliness of nominations and eventual delivery, as well as published parameters of the trades, including quality and volume.

Of the 83 trades tracked, two were booked out upon mutual agreement, while all others were physically delivered to buyers. Physical conditions regarding logistics which are beyond the control of the seller or buyer may result in lateness, quality issues or conditions seen as a deviation from the original wording in the reported trade, for example late delivery/loading. As per Platts methodology, if a transaction becomes difficult, the party causing the issue must seek resolution including alternative loadings, qualities, dates, or book outs.

Platts also reviewed the quality of all cargoes, and the table below shows the minimum and maximum values of some key quality metrics during this timeframe. Four cargoes out of all tracked deviated from the WTI Midland specification that Platts reflects in its assessments. However, all cargoes that were eventually delivered to buyers either met the specification or were accepted by buyers and deemed to be within their operational tolerance.

Cargo Quality Data

API (deg)

Sulfur (% wt)

Mercaptan (ppm)

Iron (ppm)

WTI Midland Spec

40-44

<0.2

<75

<10

Min

40.3

0.076

20.1

1.5

Max

44.7

0.174

85.1

10.2

Average

43.1

0.118

37.6

6.0

Source: S&P Global Commodity Insights, Company sources

The table below shows the transactions that were monitored for performance from June - February.

Performance Tracking June-February Deliveries

Trade Date

Buyer

Seller

Traded Laycan

Loadport

Vessel

Remarks

5/22/2023

Vitol SA

BP Oil International

Jun 14-18

Enbridge Ingleside

Chrysanthemum

Booked Out

5/24/2023

Vitol SA

BP Oil International

Jun 14-18

Plains Eagle Ford

Advantage Award

5/26/2023

Vitol SA

Gunvor SA

Jun 12-16

Enbridge Ingleside

Sparto

5/30/2023

Vitol SA

TOTSA

Jun 12-16

Seabrook LBC

Dubai Charm

6/2/2023

Vitol SA

Trafigura PTE LTD

Jun 25-29

-

-

Booked Out

6/5/2023

Vitol SA

Gunvor SA

Jun 18-22

Enterprise Houston

Seaprincess

6/7/2023

Vitol SA

TOTSA

Jun 29-3

Enterprise Houston

Sea Jaguar

6/12/2023

Glencore UK

TOTSA

Jul 4-8

Seabrook LBC

Thyrrhenian Sea

6/13/2023

Trafigura PTE LTD

TOTSA

Jul 1-5

Buckeye TX Hub

Dubai Attraction

6/14/2023

Trafigura PTE LTD

Gunvor SA

Jul 10-14

Enterprise Houston

Nobleway

6/16/2023

BP Oil International

TOTSA

Jul 4-8

Enterprise Houston

STI Connaught

6/16/2023

BP Oil International

Gunvor SA

Jul 7-11

Enterprise Houston

Ghat

6/21/2023

Mercuria SA

Gunvor SA

Jul 10-14

Seabrook LBC

Freedom Glory

6/23/2023

Trafigura PTE LTD

BP Oil International

Jul 7-9

Enterprise Houston

STI Connaught

6/26/2023

Trafigura PTE LTD

Gunvor SA

Jul 15-19

Energy Transfer Houston

Everglades

6/28/2023

Mercuria SA

Vitol SA

Jul 23-27

Enterprise Houston

Aqualegend

6/28/2023

Mercuria SA

Vitol SA

Jul 23-27

Enterprise Houston

Pantelis

7/3/2023

Trafigura PTE LTD

BP Oil International

Aug 1-5

Enterprise Houston

Front Antares

7/4/2023

Mercuria SA

Gunvor SA

Jul 20-24

Seabrook LBC

Navig8 Perseerance

7/5/2023

Glencore UK

Vitol SA

Jul 30 - Aug 3

Enterprise Houston

Aristea

7/7/2023

Trafigura PTE LTD

BP Oil International

Aug 2-6

Buckeye STG

Indigo Sun

7/12/2023

TOTSA

BP Oil International

Aug 1-5

Enterprise Houston

Eagle Hatteras

7/13/2023

TOTSA

Vitol SA

Jul 25-29

EPIC

Brieviken

7/13/2023

Trafigura PTE LTD

Vitol SA

Aug 7-11

Seabrook LBC

STI Jermyn

7/14/2023

TOTSA

Equinor

Aug 2-6

Seabrook LBC

Kyrakatingo

7/14/2023

BP Oil International

Gunvor SA

Aug 7-11

Pin Oak

Sea Turtle

7/18/2023

TOTSA

Gunvor SA

Aug 12-16

Energy Transfer Houston

Catalan Sea

7/18/2023

TOTSA

Gunvor SA

Aug 16-20

Enterprise Houston

Eikeviken

7/18/2023

TOTSA

BP Oil International

Aug 9-13

Pin Oak

Sea Turtle

7/18/2023

Trafigura PTE LTD

Vitol SA

Aug 3-7

Seaway TX City

Proteus Phillipa

7/20/2023

TOTSA

Vitol SA

Aug 8-12

Enterprise Houston

Green Anax

7/27/2023

Gunvor SA

Vitol SA

Aug 14-18

Enterprise Houston

Minerva Zenobia

7/31/2023

Vitol SA

Phillips 66

Aug 24-28

Buckeye STG

Thyrrhenian Sea

8/1/2023

BP Oil International

TOTSA

Sep 1-5

Energy Transfer Houston

Amax Arrow

8/1/2023

TOTSA

Gunvor SA

Aug 19-23

Enterprise Houston

Minerva Zenobia

8/1/2023

Trafigura PTE LTD

Gunvor SA

Aug 13-17

EPIC

Albert

8/2/2023

TOTSA

Phillips 66

Sep 1-5

Enterprise Houston

Freeport Star

8/8/2023

TOTSA

Phillips 66

Sep 8-12

Buckeye STG

North Sea

8/8/2023

TOTSA

Unipec UK

Aug 27-31

Enterprise Houston

Aegean Nobility

8/10/2023

TOTSA

Glencore UK

Sep 4-8

EPIC

Mars Sun

8/10/2023

Gunvor SA

Glencore UK

Sep 7-11

Seabrook LBC

Seaways Yellowstone

8/15/2023

Mercuria SA

Unipec UK

Sep 10-14

Enterprise Houston

Aristea

8/24/2023

TOTSA

Phillips 66

Sep 21-25

Enterprise Houston

Oslo TS

8/29/2023

ExxonMobil S&S

Unipec UK

Sep 21-25

Enbridge Ingleside

Mare Nostrum

8/30/2023

Gunvor SA

BP Oil International

Sep 26-30

EHSC

Sea Turtle

9/1/2023

Mercuria SA

BP Oil International

Sep 28-Oct 2

EHSC

Searhythm

9/4/2023

Mercuria SA

Vitol SA

Sep 23-27

Enbridge Ingleside

P. Long Beach

9/5/2023

Mercuria SA

Phillips 66

Oct 1-5

EHSC

Pacific Opal

9/6/2023

TOTSA

Vitol SA

Sep 25-29

Enbridge Ingleside

Freedom Glory

9/6/2023

TOTSA

Vitol SA

Sep 25-29

Buckeye STG

Scorpio

9/8/2023

TOTSA

Vitol SA

Sep 23-27

EPIC

Alkinoos

10/2/2023

Unipec UK

Trafigura PTE LTD

Oct 24-28

EPIC

Brieviken

10/2/2023

Unipec UK

Trafigura PTE LTD

Oct 24-28

NuStar North Beach

Fezzan

Booked out

10/2/2023

Unipec UK

Trafigura PTE LTD

Oct 24-28

NuStar North Beach

Spyros

Booked out

10/2/2023

Unipec UK

Mercuria SA

Oct 25-29

Seabrook LBC

STI Connaught

Booked out

10/9/2023

TOTSA

OXY

Oct 31- Nov 4

Enbridge Ingleside

Claret Prince

10/10/2023

Unipec UK

TOTSA

Oct 23-27

EPIC

Stavenger

10/30/2023

Trafigura PTE LTD

Equinor

Nov 21-25

EHSC

Atlantic Jade

11/1/2023

Trafigura PTE LTD

Unipec UK

Nov 13-17

Seabrook LBC

Sea Turtle

11/3/2023

Trafigura PTE LTD

BP Oil International

Nov 24-28

EHSC

Green Adventure

11/13/2023

Trafigura PTE LTD

Phillips 66

Dec 5-6

EPIC

Ross Sea

11/13/2023

Trafigura PTE LTD

Equinor

Dec 2-9

EHSC

P. Kikuma

11/17/2023

Trafigura PTE LTD

Phillips 66

Nov 29 – Dec 3

EHSC

Aristea

11/17/2023

Mercuria SA

Vitol SA

Dec 9-13

EHSC

Ghibli

11/27/2023

ENI

BP Oil International

Dec 20-24

EPIC

Persues Star

11/28/2023

Vitol SA

STASCO

Dec 19-23

FHR

Navig8 Promise

12/1/2023

Trafigura PTE LTD

Gunvor SA

Dec 23-27

ETH

Front Ocelot

12/5/2023

PetroIneos

BP Oil International

Dec 26-30

EHSC

Nissos Paros

12/5/2023

Repsol Trading SA

Gunvor SA

Dec 27-31

ETH

Erik Spirit

12/7/2023

TOTSA

Gunvor SA

Dec 30 – Jan 3

EPIC

Emerald Spirit

12/12/2023

TOTSA

PetroIneos

Dec 24-28

Pin Oak

Karavas

12/14/2023

TOTSA

Trafigura PTE LTD

Jan 14-18

ETH

Drepanos

12/14/2023

TOTSA

Trafigura PTE LTD

Jan 14-18

NuStar North Beach

Seaguardian

12/14/2023

TOTSA

Vitol SA

Jan 9-13

Seabrook LBC

STI Spiga

12/18/2023

Gunvor SA

Vitol SA

Jan 11-15

EHSC

Breiviken

12/20/2023

PetroIneos

Vitol SA

Jan 11-15

EHSC

Torm Houston

12/20/2023

TOTSA

Gunvor SA

Jan 10-14

ETH

Sea Urchin

12/28/2023

TOTSA

Vitol SA

Jan 16-20

EHSC

Dolphin Pearl

1/4/2024

TOTSA

PetroIneos

Jan 16-20

EHSC

Torm Houston

1/16/2024

ENI

Gunvor SA

Feb 7-11

EHSC

Cobalt Sun

1/29/2024

TOTSA

EXTAP

Feb 17-21

Pin Oak

Aristea

1/29/2024

Unipec UK

BP Oil International

Feb 23-27

EHSC

FOS Da Vinci

1/31/2024

TOTSA

Glencore UK

Feb 20-24

Seabrook LBC

Front Antares

Source: S&P Global Commodity Insights, Company sources