MINI BRENT CRUDE OIL

In accordance with the regulations of Brent Crude Oil traded on Intercontinental Exchange Futures EU (ICE EU).

Product introduction

Crude oil (also known as petroleum) is a liquid extracted from oil deposits in the earth's crust. Before being processed, crude oil is brown or greenish in color.

Figure 1: Pictures of oil tanks sent for export

Thanks to the invention of the internal combustion engine, the importance of crude oil has increased and is also considered as black gold. Crude oil has many important applications in life, has been used from the past to the present and will continue to be used in the future.
Vietnam has large oil reserves and has always been a major source of foreign currency earnings
There are many types of crude oil traded on the market, but there are two types, Brent and WTI, that serve as the standard for crude oil transactions in the world:
Brent Crude Oil: Is a major commercial classification of light sweet crude that plays a major role in regulating oil prices worldwide. Used to value two-thirds of the world's internationally traded crude oil supply
For example: The price of Vietnamese oil is being imported to sell anchors according to the price of Brent oil from the Singapore market.
WTI Crude Oil: Another commercial grade that serves as a benchmark mainly used in the United States.

Source

- Brent crude oil: are oils extracted from fields in the North Sea, including 15 other types of oil such as Brent, Ekofisk, Oseberg and Forties.
- WTI crude oil: is extracted from oil fields in Texas, Luisiana and North Dakota of the US. This oil is transported by pipeline with relatively high transportation costs.

Figure 2: Pictures of offshore oil rigs

Classification and application

Table 1: Characteristics and classification of two types of Brent crude oil and WTI . crude oil

Oil prices

Figure 3: WTI and Brent oil prices over time from 1988 to 2018

In the past, the price of WTI oil was higher than the price of Brent oil, but until now, the price of Brent oil has exceeded the price of WTI oil.

Commerce

- Vietnam has oil reserves of about 4.4 billion barrels, ranking 3rd in Southeast Asia, 28th in the world. Up to the beginning of 2020, Vietnam can exploit an average of more than 200,000 barrels of oil per day per month.
- In 2019, crude oil production of OPEC countries reached 29.8 million barrels per day while US oil production was 12.3 million barrels per day.

Figure 4: Top 15 largest oil exporting countries in the world in 2019
Source: World's top export

In the market, trading on these two oils often involves oil futures contracts.

Factors affecting the price of oil

* Affected by currencies, especially by the strength and weakness of the USD.
* Influence with economic and political factors in oil-producing countries.
* Affected by weather factors, natural disasters, storms, floods.