Oil Brent - high quality

Almost all countries that produce oil on the world market supply one or several of its varieties.They differ in chemical composition, and in order to streamline their taxonomy, as well as simplify the export of "black gold", have been set up standards grades of petroleum feedstock.For Russia, the Urals and characterized Siberian Light, England - oil Brent, US - Light Sweet.

Sometimes it happens that the country produced two varieties, for example, in Russia it is hard for Urals and easy Siberian Light.

low-sulfur name of Brent composed of the first letters of words denoting horizons: Broom, Rannoch, Etieve, Ness and Tarbat.It has a density of 38 ° API - is a standard defined by the American Petroleum Institute.The sulfur content therein is equal to 0.2-1%.

Oil Brent, as a reference mark, mined between the coasts of England and European countries of Norway and Denmark in the North Sea.Here, on the edge of the graben Viking, the eponymous field discovered in nineteen seventieth year.

By its composition, properties and quality of the Brent crude oil refers to these standards, because its components are considered to be the most optimal to produce petroleum products, including gasoline and middle distillers.In the oil fields of Saudi Arabia, the United States and Southeast Asia, the product is being produced, the standard appropriate to the Brent.

A total there are more than 10 grades of oil.Of those on the world market the most popular are Brent and WTI (West Texas Intermediate).Brent crude oil specifically listed on the London Stock Exchange IPE.On the New York Stock Exchange NYMEX more valued brand of West Texas.

What determines the value of the product

Oil Brent, produced in different fields, of course, will have some differences from the reference mark.And it is from these differences, how they are significant, and depends on its cost.The more raw materials extracted from the sample is different than it is worse, the lower its price.

primary processing of raw material varieties carried out in north-west Europe.If the pricing environment is favorable, it can be delivered for processing in the Mediterranean countries or the United States.

Brent oil price set in exchange trading on the current (spot) prices and contracts, focused on the future delivery (futures).The bulk of the transactions performed in this class of futures quotations.

should be noted that futures contracts are beneficial both for the seller and the buyer.In addition, each of them insure themselves against possible changes in raw material prices.In the oil industry at the beginning, when futures contracts are only put into practice, they were skeptical and sometimes hostile.But gradually the practice began to be widely used, and today almost all of the oil companies and the countries involved in the export of oil involved in the process.

as a whole in the world market price formation is influenced by many different factors.Of course, the primary is the ratio of supply and demand.Also, a significant role played by the state of the world economy, all kinds of risks, including geopolitical.