What does Brent Blend mean?
A blend of crude oil from the North Sea that is used as an international benchmark. As crude oil is extracted from the underground oil fields in different parts of the world, the quality of crude oil varies from one field to another Brent, WTI and Dubai/Oman are three widely used benchmarks. The prices of other types of crude oils are linked with one of these three.
Futures Knowledge Explains Brent Blend
Brent blend, discovered in the early 1960s, is a light sweet crude oil with API gravity of 38.5 and has higher sulphur content. Brent carries a rate higher than the other well-known benchmark, WTI crude oil. For example, June Futures contracts for Brent traded higher at $66 a barrel compared to $59 for WTI crude on May 7, 2015.
Brent crude has been named after Brant Goose, a small bird with a short, stubby bill, found in Europe and North America.