What Brent Crude Actually Is
Brent crude originated from the Brent oilfield in the East Shetland Basin of the North Sea, discovered in 1971 and first produced in 1976. The field name came from Shell's practice of naming fields after birds (Brent = Brent goose). Today, "Brent" no longer refers only to that original field — production there has largely declined — but to a blend of crudes from several North Sea fields: Brent, Forties, Oseberg, Ekofisk, and Troll (collectively known as BFOET). The ICE (Intercontinental Exchange) is the primary exchange for Brent futures trading.
Brent is a "light sweet" crude: "light" means low density (API gravity ~38°), which makes it easier and cheaper to refine into petrol and diesel; "sweet" means low sulphur content (~0.37%), which reduces refinery processing complexity and yields cleaner products. These properties make Brent highly suitable as a refinery feedstock and explain its premium price over heavier, sourer crudes.
Brent vs WTI: The Two Main Benchmarks
Two crude benchmarks dominate global oil markets:
| Feature | Brent (ICE) | WTI (NYMEX) |
|---|---|---|
| Origin | North Sea (UK/Norway) | Cushing, Oklahoma (US) |
| Settlement | Seaborne (loadable at Sullom Voe) | Pipeline delivery at Cushing hub |
| Market coverage | ~65–70% of global crude trade | US domestic and Americas contracts |
| API gravity | ~38° | ~40° |
| Sulphur content | ~0.37% | ~0.24% |
| Typical spread | — | USD 1–5/bbl below Brent |
| Exchange | ICE | CME/NYMEX |
The Brent-WTI spread is not constant — it can widen sharply due to pipeline congestion in the US interior (as happened in 2011–2014 when WTI fell significantly below Brent) or narrow when US export infrastructure expands. The EIA daily spot prices track both benchmarks.
The Third Major Benchmark: Dubai/Oman
A third benchmark — Dubai/Oman crude — is the primary reference for Middle East crude exports to Asia. It is a medium, sour crude (heavier and higher sulphur than Brent) and typically trades at a discount to Brent. Chinese and Indian refiners pay a Brent-differential price for Middle Eastern crudes — meaning the Brent price sets the ceiling from which other crude prices are discounted.
How Brent Moves Feed Through to Pump Prices
The transmission from Brent to pump prices involves several steps, each with its own lag and amplification:
- Brent → wholesale petrol/diesel: Refiners buy crude and sell products. The product price includes crude cost plus the crack spread (refinery margin). A USD 10/bbl crude move translates to roughly USD 0.063/litre in crude cost (1 barrel = 159 litres; petrol yield ~42%, so effectively ~USD 0.15/litre of petrol produced — but shared across all products).
- Wholesale → retail: Distribution cost, retail margin, and dealer margin add USD 0.05–0.15/litre typically.
- Pre-tax → pump: Excise duty and VAT are then applied. In high-tax markets, the tax component dampens the percentage pass-through from crude — a $10/bbl crude rise adds the same absolute cents per litre but represents a smaller percentage of a higher-tax pump price.
The rule of thumb: each USD 10/barrel Brent move adds approximately USD 0.07–0.09/litre to the wholesale petrol cost before taxes. After 20% VAT, the consumer-facing impact is ~USD 0.08–0.11/litre. Our guide on what makes up the price at the pump works through the full stack.
Brent is traded as futures contracts on the ICE exchange for delivery months ahead. The "forward curve" — the shape of future prices — matters: in "contango" (futures above spot) refiners may buy now and store; in "backwardation" (futures below spot) there is incentive to draw down stocks. These dynamics affect the timing of crude purchases by refiners and therefore the lag between a crude price change and its appearance at the pump.
Where to Track Brent Prices
- ICE Brent Crude Futures — exchange-traded futures
- EIA Brent spot price history — free daily data
- IEA Brent monthly chart
- World Bank Commodity Markets data — monthly historical series
- OPEC Reference Basket price — OPEC's own benchmark (a weighted average of member crudes)
Frequently Asked Questions
What is Brent crude?
A light, sweet North Sea crude blend (BFOET) used as the global oil benchmark. Traded on the ICE exchange. Reference price for ~65–70% of global crude trade. When the news says "oil hit $90", it means Brent front-month futures.
What is the difference between Brent and WTI?
Brent is seaborne (UK/Norway), WTI is pipeline-delivered (Oklahoma). Brent covers ~65% of global trade; WTI is the US domestic reference. Brent typically trades USD 1–5/bbl above WTI. See live spreads on EIA daily spot prices.
How much does a $10 Brent move affect petrol prices?
Approximately USD 0.07–0.09/litre at the wholesale level before taxes. After 20% VAT: ~USD 0.08–0.11/litre. The full calculation depends on local refinery yields and the crack spread. See our guide on what makes up the price at the pump and our crack spread entry.