(Adds detail, suggests removing Forties and Brent in medium
term)
By Julia Payne
LONDON, Dec 6 (Reuters) - BP supports adding U.S.
crude oil grade WTI Midland on a delivered basis to the North
Sea dated Brent benchmark, which underlies the Brent futures
contract, according to a document seen by Reuters.
Brent is vital to global oil trading as it is used to price
more than half the world's physical crude. It is now based on
five North Sea crudes - Forties, Brent, Oseberg, Ekofisk and
Troll - but those supplies are in long-term decline.
Oil pricing agency S&P Global Platts and Intercontinental
Exchange (ICE), the home of Brent futures trading, have held
discussions on the benchmark, after an earlier Platts proposal
to include WTI was delayed because of industry pressure.
"BP strongly believes that the inclusion of WTI Midland,
executed correctly, is the best solution for enhancing
liquidity, retaining Brent as a well-supplied and trusted light,
sweet benchmark," the document said.
"BP also believes that in the medium-term Forties and Brent
will need to be removed from the benchmark as their values
become increasingly difficult to assess due to their reducing
volumes," according to the document.
BP also said it did not support the idea of adding Norway's
huge Johan Sverdrup field to dated Brent because it was a more
sour grade of crude. Platts had said in July that industry
opinion was focused on the possible addition of WTI or Sverdrup.
BP's comments echoed those made in September by oil trader
Vitol.
Platts had said in February it would add WTI Midland and
change the basis to a delivered one or CIF, where cargoes
include insurance and freight costs, rather than FOB, or free on
board. But in March it said it had deferred the move due to
industry pressure.
A Platts consultation on the issue ended on September 30.
Platts said it had no comment on the document.
"We respect the right of all market participants to express
their views publicly, as was the case with BP today," it said.
BP did not immediately reply to a request for comment.
Reuters competes with Platts in the provision of news and
pricing information about the oil market.
(Reporting by Julia Payne; Writing Shadia Nasralla and Alex
Lawler; Editing by Louise Heavens)