Brent Oil Futures Live Chart
Brent Oil Technical Analysis
About Brent Oil Futures
Brent Oil is a sweet, light crude oil (LCO). It is used for benchmarking the prices of nearly 60% of the crude oils traded worldwide. Brent Oil futures are financial products used by producers and marketers to manage the risk of price fluctuations in the Brent oil market. A Brent future is a consistent contract that is traded on an exchange between two parties. The buyer of the contract agrees to accept delivery of a specified quantity of Brent oil from a seller at a predetermined price on a future date.
Brent Oil Trading
Until 2005 Brent Crude oil traded on the International Petroleum Exchange in London on an open cry system. Since 2005, Brent Crude futures have traded electronically on the Intercontinental Exchange (ICE) in Europe under the symbol “B”. The ICE Brent futures are based on the underlying physical BFOE market. Brent futures have the highest daily output of any of the world’s oil benchmarks. A typical contract is for 1000 barrels and is quoted in U.S. dollars. A contract is a deliverable contract, with a cash option. The NYMEX and ICE futures markets are linked and traders can hedge a position in one of the markets by using the other.
How to Trade Brent Futures?
You can trade futures by opening a trading account with a trusted broker who handles futures trading. Starsupply Commodity Brokers, CME Globex, CME Clear Port and Etrade are some well-known online platforms for trading futures. Most brokerages will charge the National Futures Association fees, which is roughly around $0.02 per side, along with a commission (which can range from $0.025 to $3 and more, per contract per side). You will also have to pay an exchange fee, which will vary depending on the exchange and the specific contract you are trading. Be sure to look at the fine print and add up all the fees for your cost.
Brent Oil Factors that Impact Price
Brent Crude, just like any other kind of oil, is a fungible global commodity that is impacted by many different factors.
- The North Sea can be unpleasant, yet it isn’t as inclined to sea tempests and other extreme tempests of that nature as the Gulf of Mexico, so the climate isn’t as threatening to Brent oil production as it is the Gulf of Mexico oil production. Investors to a great extent look to monetary events and upward pressure on demand, just as constraints on supply.
- One long-term upward pressure on demand is growing consumption fueled by rising populations in China, India, and other developing countries.
- As these nations build up, their demand for petroleum rises. This slow increment in demand is the key factor affecting an ascent in the cost of Brent Crude as well as WTI, Dubai Crude, and other key sources of oil.
- The last few years have counteracted that rise in price somewhat by depressing economies across the globe, resulting in less demand for any type of oil (particularly in Europe).
- On the flip side, speculation has resulted in dramatic price volatility over the past decade and shows no signs of decreasing.
Advantages of Brent Oil
- Listed spreads on CME Globex eliminate leg risk for inter-commodity spreads
- Industry-leading margin efficiency or offsets save over 80%
- More than 25 Brent-related prospects and alternatives accessible to meet your supporting needs
- Futures-style margined alternatives premium isn’t paid until exercise or lapse
- Brent Calendar Spreads are one tick wide out the bend
- Fee waiver on BZO through the end of 2018
- American – style monthly option
- Exercises into BZ futures
- 25 lot block threshold