Brent crude oil, Brent oil in English, is produced in Brent area of North Atlantic. London Intercontinental Exchange and the New York Mercantile Exchange have their futures trading, which is the benchmark of market oil price.
The price difference between West Texas Light Crude Oil (WTI) in the US market and Brent crude oil in the North Sea is still very large.
In terms of pricing method, Brent crude oil is regarded as North Sea crude oil in London commodity futures trading market, that is, ICE Brent. At present, except for some oil accidents in the Middle East and the Far East, crude oil pricing in most regions, such as the North Sea, Africa, Latin America, Canada and some Middle East and Far East regions, is based on dtd Brent.
In new york commodity futures trading market, American crude oil, namely NYMEX WTI, as an important part of the world crude oil pricing system, has gradually withdrawn from the pricing stage because it is only priced for American crude oil and has strong locality. Of course, the above pricing methods are based on spot transactions. However, in the futures market, NYMEX WTI is still the largest variety of crude oil futures trading, which has a strong guiding role and influence on other crude oil futures prices.
Tracing back to the source, WTI is an intermediate base crude oil produced in West Texas, also known as Texas light crude oil, which is the benchmark oil of American crude oil futures, that is, the subject matter. All crude oil produced or sold in the United States is priced based on WTI with light weight and low sulfur.
As a big consumer of crude oil and the global influence of the New York Futures Exchange, the crude oil futures trading with WTI as the benchmark oil in the United States has become the leader in the global commodity futures trading volume. The international oil price basically refers to American crude oil futures, but less to London North Sea Brent crude oil. If there is any more oil, it will be Singapore.
In terms of trading volume, compared with Brent crude oil in the North Sea, which is also light and low in sulfur, the spot trading volume of American crude oil is far less than Brent crude oil. 1988, London International Petroleum Exchange (IPE) launched Brent crude oil futures contract, which later included northwest Europe, North Sea, Mediterranean, Yemen, Africa and other countries and regions. As a standard, they began to admire the contract as a highly flexible evasion.
It is reported that the Brent crude oil pricing system, which consists of Brent crude oil futures and spot market, covers up to 80% of the global crude oil trading volume. Although the price of NZD crude oil is becoming more and more important, 65% of the world's crude oil trading volume is still based on Brent crude oil in the North Sea.
Brent crude oil is very close to American crude oil in quality and price. Judging from the statistics of crude oil prices in recent ten years, the two are almost synchronous, and the former is generally about 5% lower than the latter. For example, 1998, Brent oil price is $65,438 +03.43, while USD crude oil price is $65,438 +04.53. In 2004, they rose to $38.29 and $465,438+$0.60 respectively. From the data point of view, the two are basically synchronized, and the price difference is also around 5%.
In a word, American crude oil (WTI crude oil) is the benchmark oil for futures pricing based on American market, while Brent crude oil is the benchmark oil for spot market based on European market. There are great differences between them, but there are also similarities.