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Brent crude oil

Brent crude oil | Brent oil

The grade of oil of Brent is one of the marker grades of oil. Brent oil is the benchmark for setting world oil prices. Brent crude oil is produced in the North Sea, in a field discovered in 1970.

The word Brent is formed from the first letters of the names of the horizons — Broom, Rannoch, Etive, Ness and Tarbert.

According to its physical properties, Brent oil is optimally suitable for processing and production of petroleum products. Brent blend is classified as light, low-sulfur oil. Recently, the price of Brent crude oil exceeds the price of WTI crude oil (WTI crude oil is the main competitor of Brent, it is produced in the state of Texas, USA).

The main consumers of North Sea oil are Western Europe. Partly true the high demand for oil in Europe can be leveled by Russian Urals oil. The state of the economies of European countries and, therefore, macroeconomic statistics may have a certain impact on the state of the oil market.

Players in the oil market can track the dynamics of GDP, industrial production, business indicators, consumption indicators and the state of the automotive industry. However, in general, Brent players adhere to the standard analysis, focusing on American oil and the state of the US and Chinese economies.

There are practically no situations on the market when North Sea oil has been changing in one direction for a long time, and Light Sweet and WTI brands in another.

In the absence of accurate data on the current balance of demand and supply of oil, players in the energy market are guided by data on the dynamics of stocks. In particular, oil traders are closely monitoring the dynamics of energy stocks in the United States. These data are published every Wednesday at 18:30 and are a serious driver for short-term movements in the oil market.

The cost of oil in our time is not based on supply and demand, but on the basis of data on reserves.

The cost of oil in our time is not based on supply and demand, but on the basis of data on reserves.

Demand for oil has a pronounced seasonality. At the beginning of summer, when holidays begin, the demand for gasoline and, consequently, for oil, grows in the countries-largest consumers of oil (the USA and Western Europe). Then, demand decreases to grow again at the beginning of winter, when the heating season begins. Here, fuel oil is the most popular raw material.

Oil demand growth

The dynamics of the oil market is one of the indicative factors in making decisions on any segment of the financial market. The oil market is monitored by any trader or investor trading currency, stocks or bonds.

The cost of energy has the most direct impact on the economies of developed countries, for the Russian economy, it is the main factor of strength or weakness. Often, the rise in energy prices or their sharp drop radically changes the price situation in the entire world economy.

The situation on the oil market affects the state of the global financial market as a whole.

The situation on the oil market affects the state of the global financial market as a whole.

Of undoubted interest is the oil trade itself. In particular, Brent North Sea oil, traded in London, is one of the most popular oil contracts. At the same time, these contracts are very actively used to extract speculative profits. In the upward phase of the economic cycle, when there is an increase in production and consumption, oil becomes more expensive.

When economic activity shrinks and overall demand falls, oil also becomes cheaper. However, the situation on the black gold market in recent years shows how much the speculative component has increased in the dynamics of its prices.

Find out the current price of Brent oil now!

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