Evolving Benchmarks in the New Oil Order

This article describes the incumbent and new-entrant crude oil benchmarks at a time the oil markets are going through a period of great turbulence. The article starts with an introduction about the current state of the industry and market, including a description of benchmarks and the price discovery process in general. The next sections describe each benchmark – WTI, Brent, and Dubai in more detail. The article ends with the pending introduction of Shanghai crude oil futures contracts, which may create a new benchmark for Asian markets.