Dated Brent Price Assessment Explained (2024)

FAQs

What does dated Brent mean? ›

What is Dated Brent? Platts Dated Brent is a benchmark assessment by S&P Global Commodity Insights of the price of physical, light North Sea crude oil. The term "Dated Brent" refers to physical cargoes of crude oil in the North Sea that have been assigned specific delivery dates.

The Brent Index is the average price of trading 600,000 barrels on the 25-day Brent Blend, Forties, Oseberg, Ekofisk (BFOE) market. The index is calculated as the average of the following: The weighted average of first-month cargo trades in the BFOE market.

Brent is the leading global price benchmark for Atlantic basin crude oils. It is used to set the price of two-thirds of the world's internationally traded crude oil supplies. It is one of the two main benchmark prices for purchases of oil worldwide, the other being West Texas Intermediate (WTI).

Basic Info. Brent Crude Oil Spot Price is at a current level of 76.61, up from 76.00 the previous market day and down from 125.68 one year ago. This is a change of 0.80% from the previous market day and -39.04% from one year ago.

WTI Crude Oil is extracted from fields located in Texas, North Dakota, and Louisiana of the United States. Brent Crude is extracted from the North Sea near Europe; its oil fields include Brent, Ekofisk, Forties, and Oseberg.

​Unlike most products, oil prices are not determined entirely by supply, demand, and market sentiment toward the physical product. Rather, supply, demand, and sentiment toward oil futures contracts, which are traded heavily by speculators, play a dominant role in price determination.

Because it has easy access to coastal ports (e.g., extensive pipelines to the coast), Brent oil can move easily to customers around the world. (Brent oil is even imported by some refineries in the U.S. and Canada.)

Brent crude futures settled down $3.53, or 4.6%, at $73.54 a barrel. U.S. West Texas Intermediate crude (WTI) was down $3.21, or 4.4%, from Friday's close, to $69.46 a barrel. There was no settlement on Monday because of a U.S. public holiday.

What is the price target for Brent? ›

Brent crude oil is expected to trade at 78.59 USD/BBL by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 86.08 in 12 months time.

The ICE Brent Crude futures contract is a deliverable contract based on EFP delivery with an option to cash settle against the ICE Brent Index price for the last trading day of the futures contract.

Historically, Brent crude oil reached an all time high of 147.50 in July of 2008. Brent crude oil - data, forecasts, historical chart - was last updated on June of 2023.

As mentioned earlier in the article, Brent crude is the benchmark used for the wider light oil market – ie Europe, Africa and the Middle East, while WTI is the benchmark for the US light oil market. Other countries often use both Brent and WTI as benchmarks to value their crude oil.

Why is Brent crude more expensive than WTI? Simply put, the preference for Brent crude today stems from the fact that it may be a better indicator of global oil prices. Brent essentially draws its oil from more than a dozen oil fields located in the North Sea.

The price of oil reached a peak of c. US$65 during the 1990 Persian Gulf crisis and war. The 1990 oil price shock occurred in response to the Iraqi invasion of Kuwait, according to the Brookings Institution.

Production is divided among several international oil companies, with Shell and ExxonMobil holding the largest stakes in the Brent fields, while Chevron and British Petroleum retain large shares in Ninian and Magnus. Other companies with sizeable interests include Total and CNR with many other smaller partners.

One of the easiest and most popular ways to trade Brent oil is with CFDs. A contract for difference (CFD) is a type of contract between a trader and a broker in order to try and profit from the price difference between opening and closing the trade.

The Brent benchmark is used to price over three-quarters of the world's traded oil, as one of the most liquid crude grades. The waterborne crude oil on which ICE's Brent benchmark is based has access to global shipping, port and storage capacity. It is processed by refiners around the world.

Brent Crude is the benchmark used for the light oil market in Europe, Africa, and the Middle East, originating from oil fields in the North Sea between the Shetland Islands and Norway. West Texas Intermediate is the benchmark for the U.S. light oil market and is sourced from U.S. oil fields.

Why is Canadian crude so cheap? ›

Western Canada Select almost always sells at a discount to WTI, because not all refineries are capable of handling it. It's generally seen to be of lower quality because of its high sulphur content, which makes it a "sour" blend, versus a "sweeter" blend like WTI.

Crude oil prices are determined by global supply and demand. Economic growth is one of the biggest factors affecting petroleum product—and therefore crude oil—demand. Growing economies increase demand for energy in general and especially for transporting goods and materials from producers to consumers.

Hong Kong is the most expensive place on Earth to fill up your car. Prices there are $4.32 a litre, substantially more than double the international average.

The Organization of the Petroleum Exporting Countries Plus (OPEC+) is a loosely affiliated entity consisting of the 13 OPEC members and 10 of the world's major non-OPEC oil-exporting nations. OPEC+ aims to regulate the supply of oil to set the price on the world market.

Saudi Arabia has the lowest oil production costs in the world thanks to two strategic advantages: Abundant pools of oil close to the surface and no taxes on production. Because of that, it can make money in almost any oil price environment.

The resulting total net petroleum imports (imports minus exports) were about -1.26 million b/d, which means that the United States was a net petroleum exporter of 1.26 million b/d in 2022. The top five source countries of U.S. gross petroleum imports in 2022 were Canada, Mexico, Saudi Arabia, Iraq, and Colombia.

It often makes more sense for the refineries in the gulf to export some of their gasoline to Mexico, rather than expensively ship their product all the way to the east coast of the U.S., which gets cheaper gasoline from Europe. oil prices down which keeps prices in the U.S. lower.

Fitch assumes a Brent price of $75/bbl in 2024 (old assumption - $65) and $65 in 2025 (old assumption $53/bbl). "Our increased 2024-2025 oil price assumptions reflect our view that it will take longer for prices to moderate due to tightening supply from Russia and Opec+'s cautious approach to supply increases.

Crude oil prices fall amid concerns about a weakening global economy. Crude oil prices are trading at a five-week low amid concerns over the US economy and weak demand in China. Oil benchmark Brent crude closed at $72.61 per barrel on May 4. This was trading at around $85 per barrel a month ago.

What are the most traded crude oil futures? ›

Futures and Options

Gain direct exposure to the crude oil market using CME Group West Texas Intermediate (WTI) Light Sweet Crude Oil futures, the world's most liquid oil contract. WTI Crude Oil futures and options are the most efficient way to trade the largest light, sweet crude oil blend.

We expect the Brent crude oil price will increase from $74/b in May 2023 to $79/b in September before declining slightly to average $78/b in the last three months of 2023. We expect the West Texas Intermediate price will follow a similar path.

A target price is an estimate of the future price of a stock. Target prices are based on earnings forecasts and assumed valuation multiples. Target prices can be used to evaluate stocks and may be even more useful than an equity analyst's rating.

Current Value. If the current price of WTI futures is $54, the current value of the contract is determined by multiplying the current price of a barrel of oil by the size of the contract. In this example, the current value would be $54 x 1000 = $54,000.

Supply and Demand Impact

As with any commodity, stock, or bond, the laws of supply and demand cause oil prices to change. When supply exceeds demand, prices fall; the inverse is also true when demand outpaces supply.

NYMEX Brent crude oil futures are traded in units of 1000 barrels (42000 gallons) and contract prices are quoted in dollars and cents per barrel.

In 2022, the United States consumed an average of about 20.28 million barrels of petroleum per day, or a total of about 7.4 billion barrels of petroleum. Learn more: How much of the crude oil produced in the United States is consumed in the United States?

Petroleum refineries in the United States produce about 19 to 20 gallons of motor gasoline and 11 to 12 gallons of ultra-low sulfur distillate fuel oil (most of which is sold as diesel fuel and in several states as heating oil) from one 42-gallon barrel of crude oil.

Brent Crude is extracted from the North Sea in the Atlantic Ocean, which is bound by the United Kingdom, Norway, France, Denmark, the Netherlands, Germany, and Belgium. It is extracted as a blend of multiple crude oils, including Brent, Ekofisk, Forties, and Oseberg.

Why is Canadian oil so expensive? ›

A large reason for these expensive prices is due to very strong demands, according to McTeague. “Post-COVID, economies are going to pick up. We use diesel for everything, from heating to fertilizer, all the way up to jet fuel,” he said.

The higher the sulfur content and the heavier the density, the lower quality the crude oil. A lighter density oil with low sulfur content (like West Texas Intermediate (WTI) from Texas) is the highest quality, which means it sells for more money.

Brent oil comes from the Scottish Brent and Ninian Systems located in the North Sea. This oil is also light and sweet, with an API gravity of 38.3.

While the prices of crude oil and gas typically move in tandem, they're not directly linked. Crude must be processed by oil refineries before it becomes the gas, diesel, and jet-fuel used for travel. The refining process comes at a cost, and that cost is known as the crack spread.

We produce five different grades of crude oil. These are: Arabian Heavy, Arabian Medium, Arabian Light, Arabian Extra Light, and Arabian Super Light.

Definitions of brent. small dark geese that breed in the north and migrate southward. synonyms: brant, brant goose, brent goose. types: Branta bernicla, common brant goose.

Brent is an Old English given name and surname. The place name can be from Celtic words meaning "holy one" (if it refers to the River Brent), or "high place", literally, "from a steep hill" (if it refers to the villages in Somerset and Devon).

Brent crude is the most traded of all of the oil benchmarks, and is defined as crude mostly drilled from the North Sea oilfields: Brent, Forties, Oseberg and Ekofisk (collectively known as BFOE).

(beld) adjective. Scot. bald; hairless. Most material © 2005, 1997, 1991 by Penguin Random House LLC.

: to state as opinion or belief : declare. : utter, pronounce.

Why is us crude cheaper than Brent? ›

Because of growth in U.S. oil production, there's a glut of oil supply in the U.S. midwest. So WTI now trades at a price “discount” to Brent oil.

Why is Brent crude more expensive than WTI? Simply put, the preference for Brent crude today stems from the fact that it may be a better indicator of global oil prices. Brent essentially draws its oil from more than a dozen oil fields located in the North Sea.

Brent is derived from the Germanic personal name Brando, a short form of the various compound personal names containing the element brand, which means sword.

noun. 1. often capitalized O&B British : an alumnus especially of a boys' school. : a man who is a member of a long-standing and usually influential clique especially in a professional, business, or social sphere.

Britisher. An archaic form of "Briton", similar to "Brit", being much more frequently used in North America than Britain itself, but even there, it is outdated. An equivalent of the word "Engländer", which is the German noun for "Englishman".

Key Points. The Brent benchmark is used to price over three-quarters of the world's traded oil, as one of the most liquid crude grades. The waterborne crude oil on which ICE's Brent benchmark is based has access to global shipping, port and storage capacity.

Brent Crude (BZ:NMX)