Kurt Chapman

Independent Consultant

Contact

WP_Query Object
(
    [query] => Array
        (
            [post_type] => publications
            [posts_per_page] => -1
            [meta_query] => Array
                (
                    [0] => Array
                        (
                            [key] => author
                            [value] => 44759
                            [compare] => LIKE
                        )

                )

        )

    [query_vars] => Array
        (
            [post_type] => publications
            [posts_per_page] => -1
            [meta_query] => Array
                (
                    [0] => Array
                        (
                            [key] => author
                            [value] => 44759
                            [compare] => LIKE
                        )

                )

            [error] => 
            [m] => 
            [p] => 0
            [post_parent] => 
            [subpost] => 
            [subpost_id] => 
            [attachment] => 
            [attachment_id] => 0
            [name] => 
            [pagename] => 
            [page_id] => 0
            [second] => 
            [minute] => 
            [hour] => 
            [day] => 0
            [monthnum] => 0
            [year] => 0
            [w] => 0
            [category_name] => 
            [tag] => 
            [cat] => 
            [tag_id] => 
            [author] => 
            [author_name] => 
            [feed] => 
            [tb] => 
            [paged] => 0
            [meta_key] => 
            [meta_value] => 
            [preview] => 
            [s] => 
            [sentence] => 
            [title] => 
            [fields] => 
            [menu_order] => 
            [embed] => 
            [category__in] => Array
                (
                )

            [category__not_in] => Array
                (
                )

            [category__and] => Array
                (
                )

            [post__in] => Array
                (
                )

            [post__not_in] => Array
                (
                )

            [post_name__in] => Array
                (
                )

            [tag__in] => Array
                (
                )

            [tag__not_in] => Array
                (
                )

            [tag__and] => Array
                (
                )

            [tag_slug__in] => Array
                (
                )

            [tag_slug__and] => Array
                (
                )

            [post_parent__in] => Array
                (
                )

            [post_parent__not_in] => Array
                (
                )

            [author__in] => Array
                (
                )

            [author__not_in] => Array
                (
                )

            [search_columns] => Array
                (
                )

            [ignore_sticky_posts] => 
            [suppress_filters] => 
            [cache_results] => 1
            [update_post_term_cache] => 1
            [update_menu_item_cache] => 
            [lazy_load_term_meta] => 1
            [update_post_meta_cache] => 1
            [nopaging] => 1
            [comments_per_page] => 50
            [no_found_rows] => 
            [order] => DESC
        )

    [tax_query] => WP_Tax_Query Object
        (
            [queries] => Array
                (
                )

            [relation] => AND
            [table_aliases:protected] => Array
                (
                )

            [queried_terms] => Array
                (
                )

            [primary_table] => wp_posts
            [primary_id_column] => ID
        )

    [meta_query] => WP_Meta_Query Object
        (
            [queries] => Array
                (
                    [0] => Array
                        (
                            [key] => author
                            [value] => 44759
                            [compare] => LIKE
                        )

                    [relation] => OR
                )

            [relation] => AND
            [meta_table] => wp_postmeta
            [meta_id_column] => post_id
            [primary_table] => wp_posts
            [primary_id_column] => ID
            [table_aliases:protected] => Array
                (
                    [0] => wp_postmeta
                )

            [clauses:protected] => Array
                (
                    [wp_postmeta] => Array
                        (
                            [key] => author
                            [value] => 44759
                            [compare] => LIKE
                            [compare_key] => =
                            [alias] => wp_postmeta
                            [cast] => CHAR
                        )

                )

            [has_or_relation:protected] => 
        )

    [date_query] => 
    [request] => SELECT   wp_posts.*
			 FROM wp_posts  INNER JOIN wp_postmeta ON ( wp_posts.ID = wp_postmeta.post_id )
			 WHERE 1=1  AND ( 
  ( wp_postmeta.meta_key = 'author' AND wp_postmeta.meta_value LIKE '{e04a13404b02632d2e8c4e178c2e2514d2db38baaca925b653b63574fd8e3fe8}44759{e04a13404b02632d2e8c4e178c2e2514d2db38baaca925b653b63574fd8e3fe8}' )
) AND ((wp_posts.post_type = 'publications' AND (wp_posts.post_status = 'publish' OR wp_posts.post_status = 'acf-disabled' OR wp_posts.post_status = 'wc-fraud-screen' OR wp_posts.post_status = 'wc-authorised')))
			 GROUP BY wp_posts.ID
			 ORDER BY wp_posts.post_date DESC
			 
    [posts] => Array
        (
            [0] => WP_Post Object
                (
                    [ID] => 46002
                    [post_author] => 974
                    [post_date] => 2023-03-21 11:00:29
                    [post_date_gmt] => 2023-03-21 11:00:29
                    [post_content] => On January 31st, 2023, S&P Global Commodity Insights (Platts) confirmed the inclusion of West Texas Intermediate (WTI) Midland in the forward Brent (BFOET) contract from June 2023 and provided further guidance. This followed the introduction of WTI Midland into Dated Brent in June 2022. While the change in Dated Brent is relatively straightforward, changes in the forward (or cash) contract are more complex.

The latest version validates the industry’s movement towards the STASCO 2022 Cash BFOETM general terms and conditions (GT&Cs), with the seller of a forward Brent being able to deliver a cargo of WTI Midland on a ‘cost, insurance, and freight’ (CIF) Rotterdam basis into the contract. However, the forward Brent will remain a ‘free on board’ (FOB) contract by using a freight adjustment mechanism, assessing the delivered WTI Midland ‘as if it was loaded in the North Sea’.

In spite of a number of forward Brent trades already done on the basis of the WTI Midland inclusion, there are some details that may need to be ironed out before the first ‘new forward Brent’ nominations are made in May 2023. Even earlier, the Intercontinental Exchange (ICE) May Brent futures contract which expires in March, on the basis of the ICE Brent Index, takes into account June forward and EFP trades for its methodology.

If history of Brent is anything to go by, it may take several years and an occasional bumpy ride to see the eventual, smooth incorporation of the WTI Midland into the Brent contract. In the long run, a successful inclusion of the US oil into the contract will likely lead to development and growth of liquid and transparent instruments for managing the risk of trading WTI Midland in the USGC.
                    [post_title] => The New Forward Brent Benchmark
                    [post_excerpt] => 
                    [post_status] => publish
                    [comment_status] => closed
                    [ping_status] => closed
                    [post_password] => 
                    [post_name] => the-new-forward-brent-benchmark
                    [to_ping] => 
                    [pinged] => 
                    [post_modified] => 2023-03-21 11:00:29
                    [post_modified_gmt] => 2023-03-21 11:00:29
                    [post_content_filtered] => 
                    [post_parent] => 0
                    [guid] => https://www.oxfordenergy.org/?post_type=publications&p=46002
                    [menu_order] => 0
                    [post_type] => publications
                    [post_mime_type] => 
                    [comment_count] => 0
                    [filter] => raw
                )

            [1] => WP_Post Object
                (
                    [ID] => 45117
                    [post_author] => 111
                    [post_date] => 2022-07-27 12:16:33
                    [post_date_gmt] => 2022-07-27 11:16:33
                    [post_content] => The introduction of the WTI Midland crude oil into the ‘Brent’ benchmark has caused a fair amount of controversy, debate, and argument, but the industry seems to be gradually reaching a consensus regarding the broad format of the new benchmark:
  • Brent assessment will remain as if it was a ‘Free on Board’ (FOB) basis, despite the inclusion of the WTI Midland crude loaded on the US Gulf Coast (USGC).
  • The cargo size will change to from 600k to 700k barrels reflecting the usual size of oil loaded in the US and bound for Europe as well as the size of modern Aframax vessels.
  • The ‘Dated’ Brent bids, offers, and trades for this grade delivered into Rotterdam will be adjusted to freight in Northwest Europe (NWE) so that the prices of WTI Midland and rest of the ‘Brent basket’ crudes are comparable.
  • The US grade can also be nominated into the Brent forward contract. While the detailed mechanics of the workings of the cash market do not seem to have been fully agreed yet, it is likely to resemble Dated Brent in as much as the value of WTI Midland will have to reflect the realities of the North Sea cash market. In other words, any Midland crude delivered to a cash buyer in Rotterdam should have its price adjusted for freight, ‘as if it loaded in the North Sea’.
Several versions of bilateral contracts or general terms and conditions (GT&Cs) for the ‘new’ Brent benchmark have emerged. The purpose of this Energy Comment is to discuss these proposed terms and other outstanding issues that need to be settled before the contract starts trading next year. [post_title] => The Brent Benchmark – Where Do We Stand? [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => the-brent-benchmark-where-do-we-stand [to_ping] => [pinged] => [post_modified] => 2022-07-27 12:16:33 [post_modified_gmt] => 2022-07-27 11:16:33 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=45117 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [2] => WP_Post Object ( [ID] => 44758 [post_author] => 111 [post_date] => 2022-04-04 17:03:22 [post_date_gmt] => 2022-04-04 16:03:22 [post_content] => Brent is the world’s most important crude oil benchmark. Arguably, it is responsible for pricing almost seventy percent of globally traded crude oil and long-term LNG. Over time however, the falling production of Brent has forced the price reporting agencies (PRAs) to introduce new grades in the ‘basket’ of crudes eligible for delivery as ‘Brent’ and widen the loading dates that can be used in their assessments. Currently, in any given month, only a couple of cargoes of the grade Brent are loaded and there have even been calls for the removal of the grade from the benchmark altogether. Brent has become just a brand name in a price assessment process that must be one of the most complex in the global commodity space. Even now, the five grades that make up the Brent basket namely Brent, Forties, Ekofisk, Oseberg and Troll (BFOET), are not sufficient to provide the necessary liquidity for the world’s most important oil benchmark. In February 2021, S&P Global Platts announced the decision to introduce West Texas Intermediate (WTI) Midland in the Brent benchmark, and the latest version of S&P Global Platts proposal has been presented to the industry for consultation until early April 2022. The proposal will make the already complicated benchmark and price discovery process even more so. The purpose of this Energy Comment is to outline the reasons for the proposed change and discuss the possible consequences for the market and the industry if the latest proposal is adopted. [post_title] => The Future of the Brent Oil Benchmark: A Radical Makeover [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => the-future-of-the-brent-oil-benchmark-a-radical-makeover [to_ping] => [pinged] => [post_modified] => 2022-04-04 17:03:22 [post_modified_gmt] => 2022-04-04 16:03:22 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=44758 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) ) [post_count] => 3 [current_post] => -1 [before_loop] => 1 [in_the_loop] => [post] => WP_Post Object ( [ID] => 46002 [post_author] => 974 [post_date] => 2023-03-21 11:00:29 [post_date_gmt] => 2023-03-21 11:00:29 [post_content] => On January 31st, 2023, S&P Global Commodity Insights (Platts) confirmed the inclusion of West Texas Intermediate (WTI) Midland in the forward Brent (BFOET) contract from June 2023 and provided further guidance. This followed the introduction of WTI Midland into Dated Brent in June 2022. While the change in Dated Brent is relatively straightforward, changes in the forward (or cash) contract are more complex. The latest version validates the industry’s movement towards the STASCO 2022 Cash BFOETM general terms and conditions (GT&Cs), with the seller of a forward Brent being able to deliver a cargo of WTI Midland on a ‘cost, insurance, and freight’ (CIF) Rotterdam basis into the contract. However, the forward Brent will remain a ‘free on board’ (FOB) contract by using a freight adjustment mechanism, assessing the delivered WTI Midland ‘as if it was loaded in the North Sea’. In spite of a number of forward Brent trades already done on the basis of the WTI Midland inclusion, there are some details that may need to be ironed out before the first ‘new forward Brent’ nominations are made in May 2023. Even earlier, the Intercontinental Exchange (ICE) May Brent futures contract which expires in March, on the basis of the ICE Brent Index, takes into account June forward and EFP trades for its methodology. If history of Brent is anything to go by, it may take several years and an occasional bumpy ride to see the eventual, smooth incorporation of the WTI Midland into the Brent contract. In the long run, a successful inclusion of the US oil into the contract will likely lead to development and growth of liquid and transparent instruments for managing the risk of trading WTI Midland in the USGC. [post_title] => The New Forward Brent Benchmark [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => the-new-forward-brent-benchmark [to_ping] => [pinged] => [post_modified] => 2023-03-21 11:00:29 [post_modified_gmt] => 2023-03-21 11:00:29 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=46002 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [comment_count] => 0 [current_comment] => -1 [found_posts] => 3 [max_num_pages] => 0 [max_num_comment_pages] => 0 [is_single] => [is_preview] => [is_page] => [is_archive] => 1 [is_date] => [is_year] => [is_month] => [is_day] => [is_time] => [is_author] => [is_category] => [is_tag] => [is_tax] => [is_search] => [is_feed] => [is_comment_feed] => [is_trackback] => [is_home] => [is_privacy_policy] => [is_404] => [is_embed] => [is_paged] => [is_admin] => [is_attachment] => [is_singular] => [is_robots] => [is_favicon] => [is_posts_page] => [is_post_type_archive] => 1 [query_vars_hash:WP_Query:private] => 09e4f7532bc0ba34527094d757017d73 [query_vars_changed:WP_Query:private] => [thumbnails_cached] => [allow_query_attachment_by_filename:protected] => [stopwords:WP_Query:private] => [compat_fields:WP_Query:private] => Array ( [0] => query_vars_hash [1] => query_vars_changed ) [compat_methods:WP_Query:private] => Array ( [0] => init_query_flags [1] => parse_tax_query ) )

Latest Publications by Kurt Chapman