What is Nymex Brent?
Deep liquidity in NYMEX Brent gives traders the opportunity to transact in the world’s leading energy marketplace and benefit from capital efficiencies when spreading against global oil benchmarks including NYMEX WTI, HO, and RB.
What is dated Brent crude?
The term “Dated Brent” refers to physical cargoes of crude oil in the North Sea that have been assigned specific delivery dates. Price indicators from the Brent Complex are increasingly used as a reference for measuring the value of crude oils all around the world, and often of global economic health itself.
What are Brent futures?
Brent Last Day Financial Futures, also known as Brent Crude Oil Financial Futures, are traded using the symbol BZ, and are cash settled based on the ICE Brent Crude Oil Index price as published one day after the final trading day for the delivery month.
Why Brent is more expensive than WTI?
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.
Why is WTI oil cheaper than Brent?
Another reason is that WTI supplies are produced in landlocked areas, and nowadays need to be transported to the coast, where most refineries are located. Because of growth in U.S. oil production, there’s a glut of oil supply in the U.S. midwest. So WTI now trades at a price “discount” to Brent oil.
What is Brent crude made from?
North Sea
Brent is a blend of crude oil recovered from the North Sea in the early 1960s., whose price is used as a benchmark for the commodity’s prices. It is a light, sweet blend that can be refined easily into petrol and associated products.
How do I invest in Brent?
How to Invest in Brent Crude
- Trade Brent crude commodity futures contracts if you want to trade the actual barrels of oil.
- Deposit the initial margin amount required for each Brent crude futures contract you want to trade.
- Lower your trading risk by investing in Brent crude commodity futures options.
What’s new at CME Group?
In response to customer demand, CME Group now offers Brent Crude Oil options (BZO) with futures-style margining, which matches the prevailing Brent market convention.
How many Brent-related futures and options are available?
More than 25 Brent-related futures and options are available to hedge with precision. Last Updated 12 Sep 2021 05:24:25 AM CT. To support the transition to a greener energy market for transportation fuels, CME Group’s NYMEX is now offering four futures contracts for Used Cooking Oil (UCO) and Used Cooking Oil Methyl Ester (UCOME).
What is the Brent crude oil market?
The Brent market also offers monthly financial-based contracts based on the underlying futures market. Sitting alongside the cash and dated structures are a series of financial-based derivative contracts facilitating the hedging of both short-term and long-term crude oil markets.
What is the WTI/Brent spread and why does it matter?
The single most widely traded spread in the global oil complex is the WTI/Brent spread and the change in the relationships between these two global marker crude oils has implications to both crude oil and refined products on a global basis.