Oil price

Today Sunday, 26 Martha, 2023 year

Oil price and properties

If you are looking through the news of the economy, then there is a high probability that you will come across a variety of information on oil trading, at its price. And for good reason. Oil occupies a huge niche in the economy and politics of many countries, the well-being of many peoples, including the peoples of Russia, depends on it..

Light and heavy oil. Sulfur in oil

There are various types of crude oils, of which some are preferred over others.. Oils are classified as sour and sweet. - higher sulfur and lower sulfur content, as well as heavy - dense and light - less dense. We are used to thinking of oil as a dark, thick, oily liquid, but very light oils are common, which are more or less thick.. Oil is classified by density and sulfur content, which are set by the American Petroleum Institute. (API).

The density of oil is measured in degrees on a scale API: super light - super light - before 50, extra light - extra light - 41,1-50, easy - light 31,1-41,1, average - medium 22,3-31,1, heavy - heavy 10-22,3, extra heavy - extra heavy before 10
For refiners who produce gasoline and diesel fuel grades with lower sulfur content are preferred.. The fact is that recently the requirements for gasoline, for the sulfur content in it, have become more stringent, due to the fact that sulfur in gasoline is very harmful to the environment..
Oil price very much depends on how it is supplied from the extraction points. Oil that comes through pipelines receives a much lower additional cost than that transported by sea and rail.

From the very beginning of oil production and trading, buyers and sellers had a need for some common standards, with the help of which they could it is convenient to trade and evaluate this or that oil. Therefore, when pricing a certain grade of oil, it is compared with the three main world standards.: Brent, WTI (Light) and the Oman brand / Dubai. When refiners are going to buy oil, they have a good idea of ​​what it is and what its properties are precisely because they compare it with these standards.. On world markets, oil is traded in futures and options contracts.

The main world standards of oil

There are dozens of different oil landmarks that represent crude oil from a particular part of the globe.. However, the price of most types of oil tied to one of three main criteria:

Brent
The Brent blend is the benchmark for more than half of the world s oil supply and trade.. Brent oil is produced from four fields in the North Sea.
The oil from this region is light and sweet, making it ideal for the production of diesel, gasoline and other high-demand products and is easy to transport to remote areas..

Oil WTI
Oil brands WTI mined in Texas and transported by pipeline, but then it is transported by other means, which makes it somewhat more expensive. Oil brands WTI is a light and sweet oil and is also well suited for the production of gasoline and diesel. WTI is the most common oil in the United States and in many surrounding countries.

Oman variety
Oil brand Oman, it is - Dubai is the main reference point for the Middle East and slightly lower grade than WTI or Brent. It is denser and contains more sulfur than Brent or Light and is the most important commodity that comes from the Persian Gulf region.

Brent crude is traded on ICE, Oman on the Dubai Commodity Exchange, and WTI traded on New-York Mercantile Exchange NYMEX. Initially, oil was traded like a regular commodity on world commodity markets. However, sharp swings in the price of oil introduced great difficulties for the sellers work. - earners and buyers - converters. In connection with this, new oil trading instruments were used - futures and options. With the help of them, buyers and sellers could agree on a certain price for the supply of oil for many days and months in advance, during which the supply price for the trading parties remained unchanged..

Oil price online per 2023