Brent crude oil is produced in the Brent region of the North Atlantic. Both the London Intercontinental Exchange and the American Mercantile Exchange have futures trading, which is the benchmark of market oil prices.
The price difference between West Germany Light Crude Oil (WTI) and North Sea Brent Crude Oil (IPE) in the US market is still very large.
Brent crude oil, a light and low-sulfur crude oil produced in Beihai, is also a benchmark quality and widely traded, which is different from the the New York Mercantile Exchange light and low-sulfur crude oil futures contract. The daily output of Brent crude oil is about 500,000.
Barrel, produced in Sullom Voe, shetland islands.
. It is mainly processed and refined in northern Europe, and a small part is processed in the northern east coast of China and the Mediterranean region. Most of these producers still trade in a non-standardized spot way.
Trading mode of Brent crude oil
In order to improve the effectiveness, liquidity and cost control of the spread trading between Brent crude oil and WTI crude oil, NYMEX set the public quotation of Brent crude oil futures trading in the trading hall of Dublin, and spent the rest of the time in
Trading on NYMEX ACCESS electronic system platform. The public bidding time is from 10 am to 7: 30 pm Dublin time, visited by NYMEX.
The electronic trading hours of the system are from 8: 00 pm15 to 9:30 am Dublin time. While improving the practicability of Brent crude oil futures contract, the exchange has introduced automatic quotation, price report, Brent crude oil and WTI.
The New York Mercantile Exchange crude oil price difference trading platform
The separate liquidation of Brent crude oil and light and low sulfur crude oil is an important development of the market, because arbitrage transactions in two different markets can be completed through this platform, and it will gradually become a liquid market with transparent price, competitive trading and simple operation.
The exchange believes that arbitrage trading is a kind of transaction, which allows operators to make full use of margin and effectively reduce transaction costs. When long positions offset short positions, the exchange believes that arbitrage reduces market risks, especially Brent crude oil futures and
WTI crude oil is arbitrage, because the two futures contracts have a good correlation, and the exchange provides 95% margin credit for one-to-one Brent /WTI arbitrage transactions.
The exchange also provided a cost control scheme for Brent crude oil futures contracts, which reduced a lot of operating expenses for market participants. Please click here for details.
Settlement method of Brent crude oil
Brent crude oil futures contracts are settled in cash, Isilor, Argus.
And market data collected by Reuters's public protest platform in Dublin. Brent crude oil futures trading is cleared by the special clearing institution of the exchange, which ensures the safety of funds, among which neutrality, liquidity and market transparency have become
Characteristics of NYMEX.