Is a New International Crude Benchmark Coming?

The world faces “major questions” over adequacy of oil supplies and the ability of long-established, international benchmarks to provide sufficient price transparency, industry consultant Jan-Hein Jesse said.

China and Russia are poised to become dominant market players over the next two decades, according to Jesse, who runs Josco Energy Finance & Strategy Consultancy out of the Netherlands. Meanwhile, production of one international bellwether, North Sea Brent crude, has halved over the past decade. The debate also involves West Texas Intermediate crude, the U.S. benchmark.

One question is, “will China and others in the region continue to allow oil prices to be set in the West?” Jesse said. By the time all this shakes out, a new global benchmark may be in place.

Jesse, an expert for the International Energy Agency and a former acquisitions manager with Royal Dutch Shell, will address this topic and others at the S&P Dow Jones Commodity Seminar in London September 20.

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