Crude oil is a significant commodity, as it drives transportation, energy generation, and some other sectors of the economy. Brent Crude is extracted from the North Sea in North-western Europe. The oil fields range from the UK to Norway.
Brent Crude is a waterborne crude. It is a sweet and light crude due to low API gravity and sulfur content. Thus, it is easy to refine and always in demand from refiners across the globe. Brent Crude is a global oil benchmark guiding over 80% of globally traded crude oil.
Why is it called Brent Crude?
The oil extraction company Shell UK named its oil fields after birds. So, this oil field is named after Brent Goose. Similarly, Brent forms the backronym for Broom, Rannoch, Ettive, Nest, and Tarbert - these are the formation layers of the oil field.
Brent crude was discovered in 1971, and actual extraction started in the late 1970s. Today, it is an oil blend comprising several North Sea Crudes. Though there were four installations, the current oil and natural gas extraction occurs through Brent Charlie (Brent C) installation.
Ways to Trade Brent Crude
Brent Crude trading was initiated through a spot market. Due to growing volatility, the Brent Futures market gained enormous prominence. Brent Futures are the contracts to deliver Brent Crude on a future date at a price known upfront. These contracts are cash-settled based on the last day’s spot price.
Brent Crude Futures are available on Intercontinental Exchange (ICE). Along with Brent Crude Futures, you may invest in Brent Crude Options, Brent Crude Exchange Traded Funds (ETFs), and Brent Crude Contract for Difference (CFDs).
TraderMade offers reliable and accurate CFD Data via API and other delivery methods for various energy markets and commodities like precious metals. To learn more about Brent Crude and other popular oil benchmarks, please read the latest article in the TraderMade Blog: What is Brent Crude?
Katadata.co.id - World crude oil prices back down at the close of trading on Tuesday (8/10) or Monday morning (Indonesia time).
However, unrest in Iraq and Ecuador could potentially interfere with oil production of both countries members of OPEC curbed the fall in oil prices.
But at the close of trade, Brent fell US$ 11 cents, or 0.2% to US$ 58,24 per barrel while WTI fell US$ 12 cents, or 0.2%, to US$ 52,63 per barrel.
(Read: Harga Oil Indonesia Touch US$ to 60.84 per Barrel in December 2019)
Nevertheless, the energy analyst said that the market's attention will be more focused on the tension of trade between the U.S. and China that could potentially affect world oil demand.
The Energy Information Administration (U.S. Energy Information Administration/EIA) has cut its growth forecast world oil demand to 2020 by 100,000 barrels per day (bopd) to 1.30 million.
