World's Largest Oil Refiner Reliance Now Trading on Brent Benchmark

Reliance Industries, India's leading conglomerate and operator of the world's largest refining complex, has entered into trading a type of U.S. crude oil that influences the global Brent benchmark. This move marks Reliance's first venture into trading WTI Midland, a type of crude oil, through the Platts Market on Close process, managed by S&P Global Commodity Insights.

In this process, Reliance offered a cargo of WTI Midland in the Platts window for the first time on Wednesday. This decision underscores India's efforts to diversify its oil supplies, especially in light of potential disruptions caused by recent U.S. sanctions on Moscow, which could impact Russian oil sales to India.

India, as the world's third-largest oil importer and consumer, is seeking alternative sources of crude oil. Reliance's entry into trading WTI Midland follows its recent purchase from Canada's Trans Mountain pipeline, indicating a strategic shift in its oil sourcing strategy.

Reliance's move aligns with a broader trend of increased participation in trading crude oil that influences the Brent benchmark. Platts added WTI to the benchmark last year, attracting more players to the market. Saudi Aramco, for instance, another major player in the oil industry, began purchasing WTI in the Platts window in February, and has been participating regularly since then.

WTI Midland is one of the six crude oil grades assessed by Platts that can impact the value of dated Brent, a crucial component of the Brent complex used to price a significant portion of the world's traded oil. The price of dated Brent is determined by the cheapest of these six crude streams, with WTI Midland often playing a significant role in influencing its value.