Less surprising than the change in the benchmark for Saudi oil sales into the US, whereby Saudi Arabia has dropped the West Texas Intermediate contract, was that it took so long to happen. Neither Riyadh nor its US customers have been happy with using WTI crude as their yardstick, even though it is the most liquid financial instrument available for oil.
While it is almost certainly wrong to conclude that the move will deal a knock-out blow to the benchmark traded on the New York Mercantile Exchange, it is right to say that WTI has lost a bit more glitter in its crucial role as an accurate reflection of global oil prices.
