LONDON May 10 Shell has urged oil
pricing agency S&P Global Platts to consider including other
regional grades, such as Russian Urals, to set the key crude
benchmark dated Brent, its vice president for crude trading and
supply said on Wednesday.
The benchmark, based on light North Sea crude grades, is
used to price about two-thirds of the world's oil but a decline
in North Sea output has led to concerns that physical volumes
could become too thin and prone to large price swings.
Platts announced that it would add a fifth grade, Troll, to
the benchmark slate from January 2018 but Shell says more must
be added in the next two to three years and considers Russian
medium sour Urals as a top candidate.
"A good benchmark need not only to be representative of what
the region produces...If you had to pick one grade of crude,
Urals is the one which North West European refineries should be
designed to run optimally," Mike Muller, the vice president of
crude trading and supply at Shell, told the Platts Crude Summit
(Reporting by Julia Payne; editing by Jason Neely)