USAI - Converging WTI To Dated Brent Is It A Sound Idea?

• Two of the most important oil price reporting agencies have decided to include the physical WTI Midland and include it in the basket of European Dated Brent.
• Before such transatlantic benchmark conversion takes place, some questions must be addressed.
• If 500,000 barrels of WTI Midland are put in the Dated Brent pool, how much will the overall WTI physical pool diminish?
• How will they manage if WTI Midland becomes the cheapest crude as Dated Brent will be WTI Midland?
• The question about "delivery" is important for the industry since WTI is deliverable at Cushing while Dated Brent is not a deliverable crude.

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