London, March 2011

Lack of product evolution may lead to ‘Natural Selection’ in oil markets: According to many media reports, weaknesses in the NYMEX WTI futures contract have now cost it the mantle of global oil benchmark status.

WTI prices are now governed more by regional than global fundamentals. Reports also confirm that the ICE Brent contract has drawbacks including a lack of transparency and may not remain a preferred benchmark for long, leaving a void to be filled by any emerging contender.

By Dr. V. Shunmugam

http://www.commodities-now.com/cn-march-2011.html