Brent Crude Oil
From MarketsWiki
| This page is sponsored by... |
 |
Brent Blend is a combination of crude oil from 15 different oil fields in the Brent and Ninian systems located in the North Sea. Its API gravity is 38.3 degrees (making it a “light” crude oil, but not quite as “light” as WTI), while it contains about 0.37 percent of sulfur (making it a “sweet” crude oil, but again slightly less “sweet” than WTI).
Uses
Brent blend is ideal for making gasoline and middle distillates, both of which are consumed in large quantities in Northwest Europe, where Brent blend crude oil is typically refined. However, if the arbitrage between Brent and other crude oils, including WTI, is favorable for export, Brent has been known to be refined in the United States (typically the East Coast or the Gulf Coast) or the Mediterranean region. The production of Brent blend, like that of WTI, is on the decline, but Brent remains the major benchmark for other crude oils in Europe or Africa. For example, prices for other crude oils in these two continents are often priced as a differential to Brent, i.e., Brent minus $0.50. Brent blend is generally priced at about a $4 per-barrel premium to the OPEC Basket price or about a $1 to $2 per-barrel discount to WTI, although on a daily basis the pricing relationships can vary greatly.[1]
Data Quotes
ICE offers data quotes on a subscription basis.[2]
See Also
- ICE Brent Crude Oil (futures contract)
References
- ↑ Pricing Differences Among Different Types of Crude Oil. Energy Information Administration. Retrieved on January 19, 2008.
- ↑ The most valuable commodity is information. ICE. Retrieved on January 14, 2008.
