Almost all countries that produceoil, one or several of its varieties are supplied to the world market. They differ in chemical composition, and in order to regularize their taxonomy, as well as to simplify the export of "black gold", special standards for grades of crude oil were created. For Russia, Urals and Siberian Light are typical, for England - Brent oil, for the USA - Light Sweet.
Sometimes it happens that two varieties are produced in the country, for example, in Russia it is heavy Urals and light Siberian Light.
Название низкосернистой нефти Brent сложено из the first letters of the words denoting the horizons: Broom, Rannoch, Etieve, Ness and Tarbat. It has a density of 38 ° API - this is the standard defined by the American Petroleum Institute. The sulfur content in it is 0.2-1%.
Brent oil, as a reference grade, is producedbetween the coasts of England and the European countries of Norway and Denmark in the North Sea. Here, on the outskirts of the Viking graben, there is a deposit of the same name, discovered in the year one thousand nine hundred and seventieth.
По своему составу, свойствам и качеству нефть Brent brand refers to these standards, because its components are considered to be the most optimal in order to produce petroleum products, including gasoline and middle distillers. In the oil fields of Saudi Arabia, the USA and South-East Asia, a product is being produced that corresponds to the reference standard Brent.
And there are more than 10 brands of oil.Of these, the most popular in the world market are Brent and WTI (West Texas Average). Brent oil is especially listed on the London IPE. On the New York Stock Exchange NYMEX, the West Texas brand is more appreciated.
What determines the cost of the product
Brent oil, produced in different fields,Of course, it will have certain differences from the reference mark. And it is from these differences, on how significant they are, and its cost depends. And the more the extracted raw materials differ from the standard, the worse it is, the lower will be its price.
The main processing of this variety of raw materialscarried out in northwestern Europe. If the pricing environment is favorable, then it can be delivered to the countries of the Mediterranean or the United States of America for processing.
Brent oil price set in processexchange trades at current (spot) prices and contracts focused on future deliveries (futures). The bulk of transactions in this class is made at futures quotes.
It should be noted that futures contracts areprofitable both to the seller and the buyer. In addition, each of them insures themselves against a possible change in the price of raw materials. In the oil industry, at first, when futures contracts were only introduced into practice, they were skeptical and sometimes even hostile. But gradually this practice began to be widely used, and today almost all oil companies and countries involved in oil export have joined this process.
And in general, in the global market pricinginfluenced by many different factors. Of course, the basic is the ratio of supply and demand. Also a significant role is played by the state of the world economy, all sorts of risks, including geopolitical ones.
