February 8, 2013 / 9:25 PM / 5 years ago

Platts says no plans to change dated-Brent crude oil methodology

Feb 8 (Reuters) - Oil price assessment agency Platts said on Friday it has no plans to change its methodology for deals on North Sea dated Brent crude after Royal Dutch Shell announced it was adjusting the trading terms for BFOE forward contracts.

Platts, a unit of McGraw-Hill, said in an email it would not include in its price assessments any deals, bids or offers, or intentions of interest under Shell’s new terms.

“Platts will continue to reflect existing editorial standards in its BFOE Brent cash assessments,” the emailed note to customers said.

“While the industry may be exploring alternative concepts, including the possible introduction of escalator mechanisms within BFOE, Platts’ assessments shall not reflect escalators until a formal methodology change has been proposed, announced, and reviewed with all interested stakeholders, and formally implemented.”

Shell announced on Friday it will apply a new Quality Premium to BFOE forward contracts - referring to deals in Brent, Forties, Oseberg, and Ekofisk - the four crudes that help to set dated Brent.

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