Dated Brent falls below $15/b amid plunging demand, global oversupply

London — S&P Global Platts crude benchmark Dated Brent fell below $15/b Tuesday, as physical cargoes continued to struggle for end-user demand and flat price markets crashed as a result of the global oversupply.

Dated Brent was assessed by Platts at $13.24/b Tuesday, down $5.86 day on day. This is the lowest that the benchmark has been assessed since March 18, 1999 and the first time its been assessed below $15/b since June 3, 1999.

Cash BFOE values, and subsequently the North Sea strip, lost significant value Tuesday as flat price markets remained under significant pressure amid global oversupply.

Platts assessed July Cash BFOE at $24.30/b Tuesday, down $5.43 day on day.

The Dated Brent physical differential was assessed at minus $4.465/b Tuesday, down 2 cents on the day due to sluggish demand for Dated Brent basket cargoes.

Market participants noted this week that more offers could emerge in the OTC market as freight rates begin to rise again, however, bids may not be seen as end-users look to other grades, such as North Sea regional grades, and storage plays look less economical as a result of the rising freight.