Equinor opposes WTI into North Sea forward market

Equinor opposes WTI into North Sea forward market

London, 10 December (Argus) — A clear divide has emerged in the North Sea market regarding the future of the Dated Brent benchmark, with Norway's Equinor expressing firm opposition to the inclusion of US crude WTI in the North Sea forward market, just days after BP laid out its plans for how to include it.

In response to a consultation launched by price reporting agency Platts and the Intercontinental Exchange (Ice), Equinor said that there were two possible solutions to the problem of dwindling physical volumes underpinning Dated Brent. The first was the inclusion of Norwegian grade Johan Sverdrup into both Dated Brent and the forward — or cash BFOET — market. The second was the inclusion of WTI into Dated Brent but not into the forward market.

"We believe Johan Sverdrup is a robust long-term solution introduced into Dated Brent and cash BFOET," Equinor said, "we do not support FOB WTI Midland into Dated Brent and cash BFOET."