Russian Urals crude was proposed to make part of Brent

Photo: Sergei Karpukhin / Reuters

In one of the largest oil companies in the world, the American Shell, suggested the inclusion of Russian oil Urals in the composition of oil mixture Brent. The inclusion of the main Russian grade of oil in the composition of the reference mixture should help prevent sharp price fluctuations due to the reduction of production volumes

Active use of Russian Urals crude oil in refineries (refinery) in Europe indicates the possibility of inclusion of such oil in the composition of the reference oil Brent believes the Vice-President of company Shell Mike Mueller.

“Some form of inclusion of the Urals [in the composition of the Brent] should definitely discuss with all the criteria,” said Mueller, speaking at the London oil conference (quoted by Bloomberg).

Reuters reports that the Vice-President of Shell called for a consultation on amending the order of forming the price of reference Brent a Commission of independent experts.

Brent is considered the standard, the level of prices calculated price of the other oil brands. The production volumes of Brent itself on the same North sea field fell sharply in the 1980s, so that now the term Brent is used as the name of a mixture consisting of several similar in quality grades of oil. In particular, in 2002 the composition was included Brent crude oil grades Forties and Oseberg, and in 2007-m — Ekofisk as, with the result that the mixture became known as BFOE.

In February 2017, Platts Agency has announced that from 1 January 2018 part Brent will be added to the oil supplied from the Troll field in the Norwegian sector of the North sea shelf and similar in its qualities with Forties, Oseberg and Ekofisk as.

According to Platts, the inclusion of Brent crude oil Troll will allow to increase daily production of a mixture of about 250 thousand Barr. Shell believe that, in future, to avoid price shocks, caused by a new decline in physical production volumes, the composition of the Brent would be worth adding the main Russian grade, and possibly some of the grades of oil extracted in the Caspian sea or West Africa.

At the same time, Mueller said that the reforms that should ensure “a stable functioning market”, can go not months and years.

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