Vitol Says Brent Oil Benchmark Needs African Crude Fix

Brent is losing its effectiveness as the global benchmark crude price and needs to be fixed, according to the head of Vitol, the world’s biggest oil trader.

Dated Brent, a measure of North Sea crude that’s used to price more than half the world’s oil from Colombia to Australia and underpins billions of dollars in derivative commodity contracts, is becoming less viable because output is dwindling, and much of what remains is shipped to Asia, Chief Executive Officer Ian Taylor said yesterday in London. Crude from Africa, the Caspian Sea and possibly Russia should be added to the basket of oil used to determine the price, he said.