Brent Crude may refer to any or all of the components of the Brent Complex, a physically and financially traded oil market based around the North Sea of Northwest Europe; colloquially, Brent Crude usually refers to the price of the ICE Brent Crude Oil futures contract or the contract itself. The original Brent Crude referred to a trading classification of sweet light crude oil first extracted from the Brent oilfield in the North Sea in 1976.[1] As production from the Brent oilfield declined over time, crude oil blends from other oil fields have been added to the trade classification. The current Brent blend consists of crude oil produced from the Brent, Forties (added 2002), Oseberg (added 2002), Ekofisk (added 2007), and Troll (added 2018) oil fields (also known as the BFOET Quotation).[2]
The Brent Crude oil marker is also known as Brent Blend, London Brent and Brent petroleum. This grade is described as light because of its relatively low density, and sweet because of its low sulphur content.
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
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
Oil price benchmarks fall below $100, first time in weeks
Mar. 15 - Oil prices tumbled more than 6% on Tuesday to their lowest in almost three weeks, as Russia suggested it would allow a revival of the Iran nuclear deal to go forward and as traders worried growing pandemic lockdowns in China could dent demand.
Both Brent and U.S. crude futures benchmarks settled below $100 per barrel for the first time since late February. Since reaching 14-year highs on March 7, Brent has slid nearly $40 and WTI more than $30. Trading has been extremely volatile since Russia invaded Ukraine more than two weeks ago.
During the session, Brent futures plummeted $6.99, or 6.5%, to settle at $99.91 a barrel. U.S. West Texas Intermediate (WTI) crude fell $6.57, or 6.4%, to settle at $96.44 a barrel. Brent fell as low as $97.44 and WTI hit $93.53, their lowest since Feb. 25.
On technical charts, both contracts moved the closest to oversold territory since December. They had been in overbought conditions during early March. Brent at one point topped $139 a barrel... more on Reuters
Yuan Jumps After Report on Saudis Weighing Its Use in Oil Deals
Mar. 15 - The Chinese yuan reversed earlier declines following a report by Dow Jones that Saudi Arabia is in active talks with Beijing to price some of its oil sales to China in the currency.
The talks with China over yuan-priced oil contracts have been off and on for six years but have accelerated this year as the Saudis have grown increasingly unhappy with decades-old U.S. security commitments to defend the kingdom, Dow Jones reported, citing people familiar with the matter. The offshore yuan erased a loss of as much as 0.3%, and traded slightly stronger at 6.39 per dollar.
The outbreak of the Ukraine war and the swath of sanctions imposed on Russia as a result has brought to the fore questions about alternatives to U.S. currency-based markets, and the yuan is one in particular focus in light of China’s relationship with Russia. Saudi Arabia’s relationship with the U.S., meanwhile, has been buffeted by various issues ranging from Yemen’s civil war to potential negotiations around Iran’s nuclear program.
“Many sovereigns, including U.S.-aligned countries, have realized owning massive amounts of dollars lead to an illusion of stability,” said Victor Xing, principal at Kekselias Inc. “In any moment, a political decision could lead to that dollar reserve being frozen or seized. The Saudis could be anticipating this shift, and pricing crude in yuan would increase their trade surplus in yuan and reduce dollar holdings in an organic way.”
The bump for the yuan comes at a time when Chinese assets more broadly have been under some strain. The renminbi has come under tremendous selling pressure over the past couple days amid a rout in the country’s stocks. The offshore yuan fell more than 1.1% against the dollar in the three days through March 14, its worst such drop in a year. The offshore yuan’s 200-day moving average at 6.4116 per dollar remains key near-term support for the currency... more
Mar. 15 - The Chinese yuan reversed earlier declines following a report by Dow Jones that Saudi Arabia is in active talks with Beijing to price some of its oil sales to China in the currency.
The talks with China over yuan-priced oil contracts have been off and on for six years but have accelerated this year as the Saudis have grown increasingly unhappy with decades-old U.S. security commitments to defend the kingdom, Dow Jones reported, citing people familiar with the matter. The offshore yuan erased a loss of as much as 0.3%, and traded slightly stronger at 6.39 per dollar.
The outbreak of the Ukraine war and the swath of sanctions imposed on Russia as a result has brought to the fore questions about alternatives to U.S. currency-based markets, and the yuan is one in particular focus in light of China’s relationship with Russia. Saudi Arabia’s relationship with the U.S., meanwhile, has been buffeted by various issues ranging from Yemen’s civil war to potential negotiations around Iran’s nuclear program.
“Many sovereigns, including U.S.-aligned countries, have realized owning massive amounts of dollars lead to an illusion of stability,” said Victor Xing, principal at Kekselias Inc. “In any moment, a political decision could lead to that dollar reserve being frozen or seized. The Saudis could be anticipating this shift, and pricing crude in yuan would increase their trade surplus in yuan and reduce dollar holdings in an organic way.”
The bump for the yuan comes at a time when Chinese assets more broadly have been under some strain. The renminbi has come under tremendous selling pressure over the past couple days amid a rout in the country’s stocks. The offshore yuan fell more than 1.1% against the dollar in the three days through March 14, its worst such drop in a year. The offshore yuan’s 200-day moving average at 6.4116 per dollar remains key near-term support for the currency... more
Bohai Sea oilfield output exceeds 500 million tons
Mar. 14 - The Bohai Sea oilfield, China's largest crude oil base, had produced a cumulative total of oil equivalent exceeding 500 million tons as of Monday, after it has been in operation for more than 50 years.
"The 500 million tons of oil equivalent can meet the basic needs of 1.4 billion Chinese people for a year, and can be used by a megacity like Tianjin with a population of over 10 million for nearly a century," media reports said on Monday, citing Wang Yu, a production manager of the Tianjin branch of China National Offshore Oil Corp (CNOOC).
The term "oil equivalent" is used to facilitate like-for-like comparisons in the energy industry. One barrel of oil (159 kilograms) is generally deemed to have the identical amount of energy content as 6,000 cubic feet (0.03 cubic meters) of natural gas.
Located in the hinterland of the Beijing-Tianjin-Hebei region in North China, the Bohai field has cumulative proven geological reserves of more than 4.4 billion tons of oil and nearly 500 billion cubic meters of natural gas... more from Global Times
Mar. 14 - The Bohai Sea oilfield, China's largest crude oil base, had produced a cumulative total of oil equivalent exceeding 500 million tons as of Monday, after it has been in operation for more than 50 years.
"The 500 million tons of oil equivalent can meet the basic needs of 1.4 billion Chinese people for a year, and can be used by a megacity like Tianjin with a population of over 10 million for nearly a century," media reports said on Monday, citing Wang Yu, a production manager of the Tianjin branch of China National Offshore Oil Corp (CNOOC).
The term "oil equivalent" is used to facilitate like-for-like comparisons in the energy industry. One barrel of oil (159 kilograms) is generally deemed to have the identical amount of energy content as 6,000 cubic feet (0.03 cubic meters) of natural gas.
Located in the hinterland of the Beijing-Tianjin-Hebei region in North China, the Bohai field has cumulative proven geological reserves of more than 4.4 billion tons of oil and nearly 500 billion cubic meters of natural gas... more from Global Times
Saudi Crown Prince Mohammed Bin Salman's Dilemma Over China
Mar. 17 - ..."It would be reckless, given global oil pricing in dollars and the currency peg, not to mention the amount of Saudi debt priced in dollars, its reserve assets in dollars and their holdings of U.S. equities," said Karen Young, a resident scholar at the American Enterprise Institute.
"There may be some contracts in yuan between Saudi Arabia and China, but there is no reorientation of Saudi monetary policy," she said.
The Saudi central bank had assets worth $492.8 billion at the end of January, including $119 billion in U.S. Treasuries.
The government had foreign currency debt - mostly in dollars - of $101.1 billion at the end of 2021, while the Saudi sovereign wealth fund held $56 billion in U.S. equities.
Monica Malik, chief economist at Abu Dhabi Commercial Bank, said Saudi Arabia could slowly shift some sales to yuan. "A gradual shift would have a limited impact," she said.
11CommentsAnd even as U.S. officials were meeting in Riyadh, the U.S. State Department said on Tuesday that Washington was not asking its allies to choose between the United States and China. source from NDATV
