Brent oil is the light, sweet crude sourced from the North Sea. This crude oil was named 'Brent' after the Brent goose, as the oil exploration company Shell Oil had a policy to name its fields after birds. This crude oil is also known as Brent petroleum, Brent blend and London Brent and is used as a benchmark to price two thirds of the world's internationally traded crude oil supplies. Thus, when an economist mentions the price of oil, there is a high probability that they are quoting the cost of a barrel of Brent oil. This price is based on deals in the London-based Brent market, which is an informal arena where about $ 100 billion worth of oil contracts are traded each year.
Characteristics of Brent Oil
The following are the characteristics of Brent oil: • It is of a high-quality grade • Brent is light crude oil. However, its viscosity is higher than that of WTI crude • It contains roughly 0.37% of sulfur. As a result, it is classified as sweet crude • It is best for the production of middle distillates and gasoline • Brent is typically refined in Northwest Europe. However, it is also refined in the East or Gulf coasts of the US and even the Mediterranean region when the market environment is favorable for exports.
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