A "Brent" generally refers to Brent Crude Oil, which is a major global benchmark for crude oil prices. It originated as the name of a specific type of light, sweet crude oil extracted from the Brent oil field in the North Sea. Brent Crude serves as a price reference point for about 80 percent of the world's traded crude oil and is especially influential in the Atlantic basin, including Europe, Africa, and the Middle East. It is favored for its low sulfur content and relatively low density, making it easier and less costly to refine compared to heavier or sour oils. Brent is also known as Brent Blend, London Brent, or Brent petroleum and is used alongside West Texas Intermediate (WTI) as one of two main international crude oil benchmarks.
Components of Brent
- Originally from the Brent oil field, now a blend of oils from several North Sea fields plus Midland Texas oil.
- Used in futures contracts and physical trading.
- Key to pricing and trading in the oil market globally.
Importance
- Pricing benchmark for two-thirds of international crude oil.
- Influences operational costs and profitability for many industries worldwide.
- Provides a waterborne crude advantage facilitating global shipping and transport.
In summary, Brent is a crucial oil market benchmark representing a type of high-quality crude oil and a trading classification used worldwide to set oil prices.
