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Global: Oil trader calls for Brent benchmark reform

By  |  February 18, 2014

The head of the world’s largest oil trading firm has reportedly called for the reformation of the Brent benchmark used to price much of the world’s oil.

Reports say Vitol chief executive Ian Taylor has called for the reform as Brent oil production is now on the decline; oil prices can drastically waver due to minor production disruptions, reports say.

Further, the Brent benchmark can be easily to manipulate because of the limited number of Brent oil producers – a problem European authorities are now looking into.

Taylor is now championing changes to prevent such manipulation. He has reportedly proposed the expansion of Brent oil to include oil from more geographical locations.

Price reporting agency Platts should focus on this change, the executive said.

Full Content: Bloomberg

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