We're your best review guide

Oil price in London - Brent

investment in brent oil Johannes Röll Visitors: 433

On the electronic platform of the European futures market ICE (Intercontinental Exchange), symbolically located in London, spot transactions are conducted daily, in particular, for Brent oil from the North Sea (spot market) or in the form of forward contracts (futures) for 1000 barrels of Brent oil with a maturity of 3 months, 1 year or 2 years. These transactions determine the price of Brent oil, which is also determined by geostrategic considerations and various political decisions.

The world's main energy resource, oil accounts for 34% of the world's energy consumption. Road transport is 97% dependent on it and this sector is the source of 50% of global demand. However, 50% of non-renewable resources have been depleted in a century, and despite the discovery of new deposits and the development of alternative energy sources, upward structural pressure affects the oil market in the long term.

However, political decisions are crucial in the evolution of prices: for example, OPEC's decision, taken in the fall of 2010, not to increase the production of its member countries in 2011 (officially to compensate for the depreciation of the US dollar). in Forex) led to a bullish rally in the oil price in the 1st quarter of 2011, which then again exceeded $120 per barrel (the price of July 2008).

Brent is a heavier crude than American WTI(West Texas Intermediate) and traditionally costs $4-5 less than WTI - thus taking into account the cost of transportation to the USA (importers brand Brent). to your account. However, in 2011 there was a "spread" of $15 to $20 contrary to this traditional trend (with Brent oil being higher than WTI oil) in the context of the tight supply of North Sea oil and the shortage of Libyan oil.

In July 2008, the price of Brent oil had already reached $125/bbl, then fell below $40/bbl in early 2009, and hovered between $70-$90/bbl between late 2009 and 2011. marked in June 2011 after the announcement of the IEA (International Energy Agency) on the supply to the market (in proportion to the reserves of its member countries) up to 60 million barrels.

Johannes Röll
Johannes Röll

Johannes Röll was born 1978 in Brilon,Germany. Graduated RWTH Aachen University. Over the past ten years he worked as Head of the plastic card team, where he was mainly responsible for the development of the distribution, Head of sales Department and Financial Analyst,where he got experience in planning and support sales figures for branches. For the present he works as freelancer

Comments 0

Recent Projects

investment in brent oil

EUR/USD soars amid rumors of an ECB rate hike by 0.5%

While the EUR/USD pair showed a short-term bearish profile early in the morning as part of a correction after yesterday's testing at 1.0200, it then showed a sudden sharp increase, reaching a maximum at the moment at 1.0250.

investment in brent oil

Oil price in London - Brent

On the electronic platform of the European futures market ICE (Intercontinental Exchange), symbolically located in London, spot transactions are conducted daily, in particular, for Brent oil from the North Sea (spot market) or in the form of forward contracts (futures) for 1000 barrels of Brent oil with a maturity of 3 months, 1 year or 2 years.

investment in brent oil

"Futures" are financial instruments used to predict future changes in the underlying asset

"Futures" are financial instruments used to predict future changes in the underlying asset (stocks, stock index, etc.): You buy or sell a certain amount of this underlying asset at maturity and at a predetermined price. But futures are very risky speculative products.

investment in brent oil

Gh0stly Gh0sts-the first omnichain NFT collection

In recent days, the premiere of the unique collection NFT: gh0stly gh0sts. Although there is little interest in the project at the moment (the Twitter profile @gh0stlygh0sts is watched by less than 12,000 people), it can already be said that this is something groundbreaking.

investment in brent oil

What is a factoring contract and what elements should I pay attention to?

Factoring is a financial service that few people have heard of until recently, but now it is gaining popularity among entrepreneurs every year. This is one of the most effective ways to maintain the financial liquidity of the company and ensure its free access to capital.

investment in brent oil

This article, first of all, will be useful for beginners in the Forex market.

Many newcomers ask such questions: "How to start trading on the Forex currency market, where to do it, the first steps in trading" and other similar questions.