Brent Weighting to Overtake WTI Oil as Largest in S&P GSCI IndexAaron Clark
Brent crude, the benchmark for more than half the world’s oil, will overtake West Texas Intermediate as the contract with the biggest weighting on the Standard & Poor’s GSCI Commodity Index next year.
The share of Brent, traded on the London-based ICE Futures Europe exchange, will rise to 24.7 percent next year from 23.48 percent in 2014, S&P Dow Jones Indices said in a statement on its website. The weighting of New York-traded WTI decreases to 24.47 percent from 25.20 percent.
Brent futures have lost almost 30 percent from a June peak amid speculation global supply is outpacing demand. Leading members from the Organization of Petroleum Exporting Countries are resisting calls to cut output and instead have reduced export prices, as the U.S. produces the most in more than three decades. The S&P GSCI index has slid 16 percent this year.
Aggregate volume of all Brent futures traded yesterday on ICE was up 22 percent from a year ago at about 809,000 contracts, according to data compiled by Bloomberg. WTI aggregate volume was 46 percent higher at about 633,000.
Gold will account for 2.419 percent of the index next year, up from 2.364 percent in 2014. Gasoil, the third largest component, dropped to 7.378 percent from 8.301 percent, according to the statement.
Changes in the composition of the index are based on production levels of its 24 raw materials averaged over five years and trading volume from September of the previous year to August of the current year, according to the statement.