Brent crude is a type of oil used as a benchmark for pricing various grades of crude oil. It is produced from the North Sea and serves to set the price of nearly two-thirds of all global crude imports. Brent provides an important reference point for trading in international markets, making it one of the most heavily traded commodities worldwide.
Brent Crude has been around since 1988 when it was first introduced by Shell Oil Company. This grade became known as “brent” after its namesake, a small fishing village located on the north coast of Scotland near where much offshore drilling takes place in that region’s waters. The name reflects both its geographical origin and its quality – being composed largely (over 90%)of light sweet crudes with API gravity between 38°–40°API and sulphur content below 0.5%.
The composition makes Brent ideal for refining into gasoline or jet fuel due to its low sulfur content which reduces pollution during combustion compared to heavier sour crudes such as West Texas Intermediate (WTI). In addition, Brent offers more predictable pricing than some other sources due to supply stability; this helps prevent large swings in cost associated with unforeseen events like weather conditions that can impact production levels at certain areas around the globe . As such, it remains popular among energy traders who use futures contracts linked directly or indirectly to brent prices when hedging against volatility or taking positions on future movements within commodity markets worldwide .
In summary , Brent Crude continues to be essential component in setting global oil prices over thirty years later thanks primarily because it’s reliable composition relative location allows producers refiners alike establish dependable stable outlooks moving forward despite any potential disruptions throughout world marketplaces today tomorrow beyond
