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Brent crude futures

The waterborne North Sea benchmark that prices roughly three quarters of internationally traded crude, listed on ICE in 1,000-barrel cash-settled contracts.

Brent's relevance comes from being seaborne. A cargo priced against Brent can go anywhere, so it reflects global supply and demand in a way that a landlocked benchmark cannot. Most of Africa, Europe, the Middle East and Asia price crude at a differential to Brent.

The underlying basket has been widened repeatedly as North Sea production declined — Brent, Forties, Oseberg, Ekofisk, Troll and, since 2023, WTI Midland — because a benchmark needs enough physical volume behind it to be manipulation-resistant.

The ICE contract settles financially against the Brent Index rather than by physical delivery, which is why it never had a 2020-style collapse: an expiring long owes cash, not the problem of finding a tank.

Example: Brent at $82.20 against WTI at $78.60 gives a brent-wti-spread of $3.60. A European refiner deciding between a Forties cargo and imported US barrels compares that spread with the roughly $2.50 to $4.00 cost of Atlantic freight.

Related: cl, brent-wti-spread, ice-exchange, light-sweet-crude, cash-settlement

See it drawn

Original diagrams for the ideas on this page. Illustrative, not real market data.

Bid-ask spread in an order bookSell orders stacked above buy orders with a gap between the best of each.SELLERS (asks)50.0690050.051,40050.0460050.011,10050.002,30049.99800spread = 0.03BUYERS (bids)
The bid-ask spread. Buy orders sit below, sell orders above, and the gap between the best bid (50.01) and best ask (50.04) is the spread you pay to cross. Bar length shows the size resting at each price.

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