Brent Crude
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Brent Crude is one of the major classifications of oil consisting of Brent Crude, Brent Sweet Light Crude, Oseberg and Forties. Brent Crude is sourced from the North Sea. The Brent Crude oil marker is also known as Brent Blend, London Brent and Brent petroleum. The other well-known classifications are the OPEC Reference Basket, Dubai Crude and West Texas Intermediate (WTI). The name 'Brent' comes from the naming policy of Shell UK Exploration and Production, operating on behalf of Exxon and Shell, which originally named all of its fields after birds (in this case the Brent Goose). It also refers to the formation layers[citation needed] - Broom, Rannoch, Etive, Ness and Tarbert, which are named after geographical features - lochs and glens - of the Scottish Highlands). Oil production from Europe, Africa and the Middle East flowing West tends to be priced relative to this oil, i.e. it forms a benchmark. However, large parts of Europe now receive their oil from the former Soviet Union especially through Russia.
CharacteristicsBrent blend is a light crude oil, though not as light as WTI. It contains approximately 0.37% of sulphur, classifying it as sweet crude, yet again not as sweet as WTI. Brent is ideal for production of gasoline and middle distillates. It is typically refined in Northwest Europe, but when the market prices are favorable for export, it can be refined also in East or Gulf Coast of the United States or the Mediterranean region. Brent Crude has an API gravity of around 38.06 (specific gravity of around 0.835). TradingThe symbol for brent crude is SC. It was originally traded on the open-outcry International Petroleum Exchange in London, but since 2005 has been traded on the electronic IntercontinentalExchange, known as ICE. One contract equals 1,000 barrels. Contracts are quoted in US dollars. Therefore each tick lost or gained equals $10. PricingTypical price difference per barrel is about $1 less than WTI, and $1 more than OPEC Basket. However, in 2007 Brent Crude futures have been trading at a premium to WTI of approximately $1 to $3 per barrel. The depletion of the North Sea oil fields is one explanation for the divergence in prices. See also Wikinews has related news:
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