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. 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 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

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