Almost all the countries which are engaged in oil production on the world market put one or more varieties. They differ in chemical composition, and in order to streamline their systematics, as well as to simplify the export of "black gold", was created by a special standard grades of crude oil. Russia is characterised Urals and Siberian Light, for England – Brent crude oil for the United States – Light Sweet.
Sometimes it so happens that the country produces two varieties, for example, in Russia it is heavy Urals and Siberian Light easy.
The Name of low-sulphur Brent crude oil is made of the first letters of the words denoting horizons: Broom, Rannoch, Etieve, Ness and Tarbat. It has a density of 38° API – a standard defined by the American petroleum Institute. The sulfur content in it is equal to 0,2-1%.
Brent crude as the reference mark is produced between the coasts of England and the European countries of Norway and Denmark in the North sea. Here, on the edge of the Viking Graben, is the same name field opened in nineteen seventies.
According to its composition, properties and quality Brent belongs to these standards, because its components are considered to be the most optimal in order to produce petroleum products, including gasoline and medium-sized distillers. In the oil fields of Saudi Arabia, the USA and South-East Asia, extraction of the product corresponding to the considered benchmark Brent.
And there are more than 10 brands of oil. Of them on the world market the most popular are Brent and WTI (West Texas intermediate). Brent especially is listed on the London stock exchange IPE. On the new York stock exchange NYMEX is more valued in West Texas brand.
Recommended
Competition – a concept inherent in a market economy. Every participant in the financial and commercial relations, seeks to take the best place in the environment where it must operate. For this reason, there is stiff competition. The struggle ...
The mayor: powers and duties. Elections of the mayor
Normal functioning of all systems of the settlement, competent and timely execution of tasks in the sphere of economic, social and other areas of development is impossible without control of the mayor. But how voters can evaluate the quality of work ...
Francisco Franco: biography and political activities
When the civil war began in Spain, General Francisco Franco (Francisco Paulino of Hermenegildo Teodulo Franco Bahamonde - full name) celebrated its arakatzailea, but he seemed already tired of life and much older than his years. To unpresentable appe...
What determines the value of the product
Brent crude, produced in different fields, of course, will have certain differences from the reference brand. And it is from these differences, how they are significant, and depends on its cost. And the more the extracted raw materials is different from the standard, what is worse, the lower will be its price.
The Main processing of this variety of raw materials is carried out in the North-West of Europe. If the pricing environment is favorable, it may for the processing be delivered to the Mediterranean countries or in the United States of America.
The Price of Brent crude oil established in the process of trading at the current (spot) prices and contracts, focused on delivery in the future (futures). The majority of transactions for this class is done on futures quotations.
It Should be noted that futures contracts are beneficial to both the seller and the buyer. Each of them insures against possible changes in the prices of raw materials. In the oil industry at first, when futures contracts were introduced only in practice, they were skeptical and sometimes even hostile. But gradually this practice became widely used, and today almost all the oil companies and countries exporting oil involved in this process.
As a whole in the world market price formation is affected by many different factors. Of course, the key is the ratio of supply and demand. Also essential is the state of the global economy, all kinds of risks, including geopolitical.
Article in other languages:
BE: https://tostpost.com/be/nav-ny-gramadstva/9941-naftu-brent---vysokaya-yakasc.html
DE: https://tostpost.com/de/news-und-gesellschaft/9826-brent---qualit-t.html
ES: https://tostpost.com/es/noticias-y-sociedad/9808-el-petr-leo-brent---de-alta-calidad.html
KK: https://tostpost.com/kk/zha-aly-tar-o-am/9897-m-nay---zho-ary-sapaly.html
PL: https://tostpost.com/pl/aktualno-ci-i-spo-ecze-stwo/10104-ropa-brent---wysoka-jako.html
TR: https://tostpost.com/tr/haber-ve-toplum/9915-brent-petrol---y-ksek-kalite.html
UK: https://tostpost.com/uk/novini-ta-susp-l-stvo/9961-nafta-brent---visoka-yak-st.html
Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."
Related News
Dmitry Grachev, a photo of which can be confused with a photograph of the most famous man in Russia, – modern Russian parodist and comedian. In recent years he has gained great popularity among the public of our country larg...
The pilot-fish: little friends big sharks
In the distant warm seas and oceans inhabits a nondescript fish with striped sides and a pointed head. Like many other fish, it eats crabs, small clams and relatives. Sometimes sent on the migration.one could say that the pilot - ...
Woody Harrelson: filmography and best actor
One of the journalists once said that any tape should not be allowed for viewing by the audience under the age of 18, if the poster is a smug smiling woody Harrelson. Filmography of the actor, including dozens of paintings, fully ...
Courtney Love – American actress and singer and favorite female musician Kurt Cobain (‘Nirvana"). Want to learn how to develop her creative career? Are you interested in the love story of two musicians: Roots and ...
Sergey Chemezov – CEO of rostec
Sergey Chemezov-CEO of the Corporation "rostec" last Chapter «Rosoboronexport». Included in the Supreme Council of the party «United Russia». Is considered a close ally of Vladimir Putin. The Agen...
The future of Europe - features, predictions and interesting facts
for more than a century of thought on the future of Europe does not leave the attention of philosophers, historians, politicians and simple-minded people. The internal orientation of Russia to the West adds to this contemplation t...
Comments (0)
This article has no comment, be the first!