LONDON (Reuters) - Royal Dutch Shell (RDSa.L) has updated the terms which govern Brent oil trade to allow for the addition of a fifth crude oil grade into the basket used to assess the global oil benchmark.
Oil pricing agency S&P Global Platts (SPGI.N) plans to add Norway’s Troll crude to the four already used to assess Brent from January 2018. This will join Brent, Forties, Oseberg and Ekofisk, or BFOE as they are known.
With effect from Friday, Shell updated its “SUKO 90” terms and conditions on its website to add Troll to the existing four crudes, and so bring them into line with the plans of Platts.
The revision means that the addition of Troll into Brent will be adopted by the wider market, since the SUKO 90 terms overseen by Shell govern trading of BFOE contracts.
Brent is used to set the price of billions of dollars of daily oil trade though the forward market for BFOE crude cargoes, swaps markets, physical benchmark dated Brent and Brent crude futures LCOc1.
Thomson Reuters, parent of Reuters news, competes with Platts in providing news and information to the oil market.
Reporting by Alex Lawler; editing by Susan Thomas