Brent Crude Oil

Brent Crude is one of the three primary oil benchmarks utilized by traders dealing in oil contracts, futures, and derivatives. It is also referred to as Brent oil, Brent blend, and London Brent. The other two key benchmarks are West Texas Intermediate (WTI) and Dubai/Oman, although numerous smaller oil varieties are also traded.

As you can see, the term “price of oil” can be misleading since there is no singular price for oil. Each benchmark has its own distinct “price.” This indicates that there are multiple oil prices, so if you wish to know the “price of oil,” you must specify which benchmark you are referring to. Brent Crude is the most actively traded among all oil benchmarks, with approximately two-thirds of all oil pricing based on it.

Brent blend is not traded directly in real-time; however, Brent futures are available on the Intercontinental Exchange (ICE) and NYMEX, with delivery dates spanning all 12 months of the year. Oil benchmarks serve as a valuable tool for oil traders and speculators to identify the type of oil they are trading. Oil from different fields has varying values due to its applications in different industries and the differing ease of transport.

This grade is classified as light due to its relatively low density and sweet because of its low sulfur content, making it easy to refine into diesel fuel and gasoline. Brent Crude is sourced from the North Sea and includes Brent Blend, Forties Blend, Oseberg, and Ekofisk crudes, collectively known as the BFOE Quotation. Its relative ease of transport, being produced at sea, contributes to its widespread trading.

The Brent Crude oil marker is also known as Brent Blend, London Brent, and Brent petroleum.