Eastern markers

摘要

Asia is ill-served by crude price markers. Benchmarks must strike a balance between accuracy and liquidity, and the Asian market has been left with a mish-mash that satisfies neither criteria. Falling production of Mideast Gulf marker streams, antiquated sweet crude assessments in southeast Asia, and an in-built conservatism have stymied market change. But a rise in exports of light sour ESPO Blend from Russia’s Pacific port of Kozmino offers the east of Suez market an opportunity to move crude pricing forward.