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Markets & Forecasts

Brent benchmark shake-up puts LNG market at risk of disruption

Potential changes intended to buttress Brent’s status as the primary benchmark for global oil prices could have significant consequences for LNG Potential changes intended to buttress Brent’s status as the primary benchmark for global oil prices could have significant consequences for LNG.
By Colin Shek 2 July 2019 World / LNG 0 34354
A platform in the Troll field. (Øyvind Hagen/Equinor)

A potential shake-up of how the price of Brent crude is assessed could have major implications for the global LNG market, as the world’s leading oil benchmark underpins the bulk of long-term LNG contracts.

The Brent price – actually the cheapest of five crudes produced in the North Sea that includes Brent – is currently assessed daily by S&P Global Platts. Of the five crudes, it is typically the lower-quality Forties that sets the Brent price because it is a heavier and sourer grade. Brent plays...