Indian company Reliance begins trading US oil which serves as a benchmark for Brent oil

Indian company Reliance begins trading US oil which serves as a benchmark for Brent oil
Indian company Reliance begins trading US oil which serves as a benchmark for Brent oil

India’s Reliance has made its first foray into trading a type of U.S. crude that serves as the basis for global benchmark Brent, in a process managed by oil index publisher S&P Global Commodity Insights , said the editor.

Reliance Industries, operator of the world’s largest refining complex, offered a cargo of WTI Midland on Wednesday through the Platts Market on Close process, known as the Platts window.

It was the first time Reliance had offered WTI in the window, Platts spokeswoman Kathleen Tanzy told Reuters. A Reliance spokesperson did not immediately respond to a Reuters request for comment.

India, the world’s third-largest oil importer and consumer, is seeking to diversify its oil supplies as new U.S. sanctions against Moscow threaten to cut Russian oil sales to India, the biggest buyer of Russian maritime crude.

India was the top buyer of Russian oil last year, after other groups pulled out of purchases following Western sanctions against Moscow over its massive invasion of Ukraine in February 2022.

Reliance made its first purchase of oil from Canada’s new Trans Mountain pipeline last month, according to trade sources.

Since Platts added WTI to its benchmark last year, more players are involved in crude trading that can price Brent in the Platts window.

Saudi Aramco, the world’s largest oil company, made its first WTI purchases in the window in February and has been participating regularly since.

U.S. Midland WTI is one of six crude oil grades assessed by Platts that can determine the value of dated Brent, part of the broader Brent complex used to price more than three-quarters of the world’s traded oil .

The price of dated Brent is set by the cheapest of the six crudes and Midland, by far the largest of the six crude streams, often plays a role in setting its value. The other five are North Sea crudes. (Reporting by Noah Browning and Alex Lawler in London; Writing by Mark Potter)

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