In simple terms
Brent crude is a grade of oil from the North Sea. Its price is the reference that much of the world’s crude is sold against.
A cargo is rarely priced on its own merits. It is priced as Brent plus or minus a difference that reflects quality and location.
How it works
Brent is light and sweet. Light means low density, sweet means low sulfur, and both make it cheaper to refine into gasoline and diesel.
The benchmark began with the Brent field off Scotland, which peaked at 504,000 barrels a day in 1982 and then ran down. To keep enough cargoes in the assessment, the basket was widened: Forties and Oseberg in 2002, Ekofisk in 2007, Troll from 2018.
Two quotes circulate. Dated Brent is the assessed price of physical cargoes. ICE Brent futures settle in cash against the ICE Brent Index, an average of trading in the 25 day cash market for standard 600,000 barrel cargoes.
Why it matters
Brent feeds into what refiners pay, and from there into pump prices, airline fares and freight rates across Europe, Africa, Australia and parts of Asia.
It is quoted in US dollars a barrel. A country’s fuel bill therefore moves with its exchange rate as well as with the barrel price.
Where you’ll see it
- Headlines that give “the oil price” in dollars per barrel
- Airline and shipping company fuel hedging disclosures
- Budget assumptions in oil exporting countries
- Inflation reports explaining energy costs
Example
A refinery in Rotterdam might agree to buy a cargo at Dated Brent minus a small discount, so the invoice total is not known until the oil loads.
Often confused with
West Texas Intermediate is the American marker. It is produced in Texas and southern Oklahoma and traded at Cushing, Oklahoma. The two usually move together but sit at different levels.
Key facts
- Brent is the most widely used global crude oil benchmark and is made up of light, sweet crude streams from the North Sea.1
- Brent production averaged 0.86 million barrels a day in 2013, roughly 1 percent of world output.1
- The original Brent field peaked at 504,000 barrels a day in 1982, so the assessment basket was widened with Forties and Oseberg in 2002, Ekofisk in 2007 and Troll from 2018.2
- ICE Brent futures settle in cash against the ICE Brent Index, an average of trading in the 25 day cash BFOE market using standard 600,000 barrel cargoes.3
- About two thirds of the world's traded crude oil is priced off the Brent complex.3
This entry explains a financial term. It is not financial advice.
Related concepts
In the news
Quick checkWhich four North Sea crude streams made up the Brent benchmark from 2007?Show answer
Brent and Forties from the United Kingdom, plus Oseberg and Ekofisk from Norway.
Sources
- U.S. Energy Information Administration. Benchmarks play an important role in pricing crude oil. 28 October 2014 (accessed 16 September 2026)
- U.S. Energy Information Administration. Another type of crude oil to be included in calculation of the Brent price benchmark. 10 March 2017 (accessed 16 September 2026)
- Intercontinental Exchange. ICE Brent Crude FAQ. January 2013 (accessed 16 September 2026)
- U.S. Energy Information Administration. Petroleum and Other Liquids: Spot Prices, Definitions, Sources and Explanatory Notes. Undated (accessed 16 September 2026)
Editorially reviewed by Specialty Digest Editorial TeamLast reviewed September 16, 2026Researched and drafted with AI assistanceReport an issue