What is Brent oil contract?

What is Brent oil contract?

The ICE Futures Europe symbol for Brent crude oil futures is B. Brent contracts are deliverable contracts based on ‘Exchange of Futures for Physicals’ (EFP) delivery with an option to cash settle against the ICE Brent Index price for the last trading day of the futures contract.

What is Brent crude used for?

Due to its light and “sweet” nature, Brent Crude is preferred in refining oil to produce diesel, gasoline, and other end products. Brent Crude is used to price at least two-thirds of the world’s traded crude oil supplies, making it one of the most important oil benchmarks.

What is the Brent curve?

The Brent Futures Curve is the current price for a commodity at a specified date in the future. In this chart, the price is shown for 1 month (M1) to 80 months (M80) in the future. The historical data regarding Brent Futures Curves can be plotted by clicking “Historical Futures Curve Data”.

Where is the Brent oil field?

Shetland Islands
Brent oil and gas field is located 186km offshore, north-east of Lerwick, Scotland, at a water depth of 140m (460ft) in the north-east of Shetland Islands. Production from the field began in 1976, five years after it was discovered.

How is Brent crude price determined?

​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.

What is Brent and WTI?

West Texas Intermediate: An Overview. The major difference between the crude oils Brent Crude and West Texas Intermediate is that Brent Crude originates from oil fields in the North Sea between the Shetland Islands and Norway, while West Texas Intermediate is sourced from U.S. oil fields.

Why is Brent oil more expensive?

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.

What is Brent crude made from?

The Two Most Prevalent Grades of Crude Oil 1 The most heavily traded grades are Brent North Sea crude (commonly known as “Brent crude”) and West Texas Intermediate (commonly known as “WTI”). Brent is oil that is produced in the Brent oil fields and other sites in the North Sea.

Why Brent is higher than WTI?

What is the difference between crude oil and Brent oil?

Brent is oil that is drilled out of the North Sea adjoining the UK and Norway while WTI Crude is extracted in the US. Predominantly, US oil is concentrated in Texas, North Dakota and New Mexico. The US uses West Texas Intermediate (WTI) as the benchmark.

Is Brent field still producing?

Decommissioning of the Brent field is ongoing and will be completed in the early 2020s….Brent oilfield.

Brent
Discovery 1971
Start of production 1976
Peak year 1982
Production

How does the ICE Brent futures contract work?

The ICE Brent crude future is based on a basket of North Sea crudes and has evolved to incorporate new grades, ensuring its ongoing utility to oil markets. The ICE Brent Crude futures contract is a physically deliverable contract with an option to cash settle against the ICE Brent Index price, which is calculated the day after the last trading

Is the Brent Future a cash settled contract?

The Brent crude future is a cash-settled contract. The Exchange’s daily position management regime requires that all positions in any contract month must be reported to the exchange on a daily basis.

Is there a futures contract for Brent crude?

Although price discovery for the Brent Complex is driven in the Brent forward market, many hedgers and traders prefer to use futures contracts like the ICE Brent futures contract to avoid the risk of large physical deliveries.

When does the front month Brent contract expire?

Front month Brent contract is the August contract – last trading date ahead of expiry is June 30, 2021 – settlement on July 1, 2021. Brent futures spec sheet Deliverable contract based on an Exchange of Futures for Physical (EFP) delivery with an option to cash settle Each lot equals 1000 barrels of crude