S&P Global to reflect WTI Midland in CIF Dated Brent from July 2022 deliveries

Following extensive market consultation, S&P Global Commodity Insights will reflect cargoes of WTI Midland crude oil in its existing Dated Brent CIF Rotterdam assessment, with effect from July 2022 cargo deliveries.

During these North Sea crude oil consultations, S&P Global received support for a comparable WTI Midland CIF (cost, insurance, freight) basis Rotterdam assessment aligned with the same 12-month ahead CIF Dated Brent Strip and delivery period as the existing Dated Brent CIF Rotterdam basket (Brent/Ninian Blend, Forties, Oseberg, Ekofisk, and Troll).

S&P Global launched its WTI Midland CIF Rotterdam 12 days to month-ahead assessment on July 1, 2021. More details can be found in the subscriber note, available here:

https://www.spglobal.com/commodity-insights/en/our-methodology/subscriber-notes/070121-platts-launches-wti-midland-cif-rotterdam-crude-assessment-basis-12-days-to-month-ahead

TIMING OF IMPLEMENTATION: S&P Global will include CIF WTI Midland cargoes in the Dated Brent CIF Rotterdam assessment from cargo delivery periods starting July 2022. Such physical cargoes can be bid or offered in the Market on Close assessment process as per current guidelines for inclusion in CIF Dated Brent from the first publishing day in June 2022.

WTI MIDLAND INTO CIF DATED BRENT: As part of this change, S&P Global will amend CIF Dated Brent to reflect the bids, offers, and transactions for the most competitive grade of Brent/Ninian Blend, Forties, Oseberg, Ekofisk, Troll, and WTI Midland, on a CIF Rotterdam basis.

VOLUME: S&P Global continues to reflect a standard Aframax cargo size of 600,000 barrels with an operational tolerance of 1% in the sellers option in its CIF Dated Brent assessment. Minimum stated volumes of 580,000 with an operational tolerance of 1% in the sellers option as well as fixed-volume cargoes of between 594,000 and 606,000 barrels are also reflected. WTI Midland cargoes of between 500,000 barrels and 700,000 barrels with an operational tolerance +/- 5% may be bid or offered in the Market on Close assessment process, but may be normalized back to the 600,000 barrel standard.

Where applicable, the existing Dated Brent CIF Rotterdam methodology guidelines apply.

This change was first proposed in Feb. 2021. S&P Global's current proposal for the inclusion of WTI Midland in Dated Brent and Cash BFOE from June 2023 can be found in the subscriber note, available here:

https://www.spglobal.com/commodity-insights/en/our-methodology/subscriber-notes/021422-platts-proposes-to-reflect-wti-midland-in-dated-brent-cash-bfoe-from-june-2023-keeps-brent-assessments-on-an-fob-basis

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