Brent Crude
The global benchmark crude oil grade produced from the North Sea, priced in $/barrel and the reference for roughly two-thirds of the world's oil trade.
Brent crude is a light, sweet crude oil blended from fields in the North Sea. It is the dominant global pricing benchmark — approximately 65–70% of globally traded oil is priced off Brent. Brent futures trade on the ICE exchange in London.
Because Brent is seaborne and globally accessible, it better reflects international supply-demand dynamics than WTI, which is landlocked at Cushing. The Brent-WTI spread reflects US infrastructure constraints, export capacity, and regional supply balances.
Brent futures settle in cash, unlike WTI which can result in physical delivery at Cushing — an important distinction during periods of extreme storage stress.
Example
Brent crude trades at $82.10/bbl while WTI is at $77.50/bbl — a $4.60 Brent premium. This spread typically widens when US crude inventories build at Cushing and narrows when US export infrastructure is unconstrained.
Related Terms
Benchmark Price
A widely accepted reference price for a commodity that other grades, contracts, or products are priced against — WTI, Brent, Henry Hub, and COMEX gold are key examples.
BeginnerCrack Spread
The price difference between crude oil and refined petroleum products (gasoline, diesel), representing the refining margin.
AdvancedEnergy Complex
The collective term for energy-related commodities — crude oil, natural gas, refined products (gasoline, heating oil, diesel) — and the markets and instruments around them.
BeginnerGrade / Quality Spec
The standardized quality specifications a commodity must meet to be deliverable against a futures contract — API gravity and sulphur content for crude oil, purity for metals.
IntermediateOPEC
The Organization of the Petroleum Exporting Countries — a cartel of major oil producers that coordinates production levels to influence global crude prices.
IntermediateWTI Crude
West Texas Intermediate crude oil — the US benchmark grade traded on NYMEX, priced in $/barrel and settled at Cushing, Oklahoma.
Beginner