Educational purposes only. This content does not constitute investment advice. Read our disclaimer
StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
The main international benchmark price for crude oil, based on oil from the North Sea. When the news quotes "oil prices," it is often quoting Brent (the global benchmark) or WTI (the US benchmark).
Why It Matters
Brent is the reference price for roughly two-thirds of the world's traded oil, so it is the number most affected by international supply threats like a Strait of Hormuz disruption. Watching Brent versus WTI also tells you whether a price move is global (both move) or more US-specific (they diverge).
Key Points
- Brent = international benchmark (North Sea oil).
- It is the price most sensitive to global supply shocks.
- Usually trades slightly above WTI, the US benchmark.
Related Terms
Common Questions
The main international benchmark price for crude oil, based on oil from the North Sea. When the news quotes "oil prices," it is often quoting Brent (the global benchmark) or WTI (the US benchmark). Brent is the reference price for roughly two-thirds of the world's traded oil, so it is the number most affected by international supply threats like a Strait of Hormuz disruption. Watching Brent versus WTI also tells you whether a price move is global (both move) or more US-specific (they diverge).
Brent is the reference price for roughly two-thirds of the world's traded oil, so it is the number most affected by international supply threats like a Strait of Hormuz disruption. Watching Brent versus WTI also tells you whether a price move is global (both move) or more US-specific (they diverge).
Brent = international benchmark (North Sea oil).
It is the price most sensitive to global supply shocks.
Usually trades slightly above WTI, the US benchmark.