Future Brent options cement Fob status

The key promoters of the Brent crude trading complex have accepted that the benchmark will not be switching to a delivered status any time soon

Price reporting agency (PRA) S&P Global Platts and exchange Ice—owners of the Dated Brent physical benchmark and the most liquid Brent futures contract, respectively—have issued a paper on potential alternatives to boost tradeable volumes in the key global crude trading venue. The paper comes less than six months after the former caused market ructions with a surprisingly radical proposal to move assessments from their traditional Fob-loading point basis to a Cif-delivered basis. Several points already stand out. The first is that the PRA and exchange are moving in step again. Platts’ solo run in February exposed cracks in the relationship when a letter from Ice to Platts critical of the