North Sea Brent Crude
Candlefocus EditorThe vast majority of crude oil is traded on the commodity futures market, and North Sea Brent Crude is no exception. The oil crisis of the late 1970s spurred an even increase in the trading of this commodity. Investors may either trade Brent-related commodity contracts as a hedge or on a speculative basis. For example, companies that produce or market crude oil or refineries and other entities that process the oil, may choose to hedge against future price variations by buying and selling these contracts.
North Sea Brent Crude is the world's most traded physical crude. Pricing for it is the primary benchmark for deals done across the Atlantic Basin, including supply deals with Europe, West Africa and the Mediterranean region. Samples of North Sea Brent Crude oil are taken from sites in the North Sea and tested to insure quality and standard. The samples are examined for their specific gravity, wax/paraffin content, viscosity and other characteristics which makes North Sea Brent Crude oil highly sought after for its specificity.
All in all, North Sea Brent Crude is a light sweet crude oil, first gathered in the early 1960s, that serves as a highly sought-after benchmark for other worldwide oil markets. The crude's specific gravity, wax/paraffin content, viscosity and other characteristics make it an attractive commodity for hedging and speculation. In this manner, North Sea Brent Crude is not just a reliable benchmark, but an incredibly valuable source of income on the world stage.