Brent Crude is an important benchmark that defines the prices for oil around the world. Primarily extracted from under the North Sea, this light low-sulphur oil type consists of Brent Blend, Forties Blend, Oseberg and Ekofisk crudes (also referred to as the BFOE Quotation).
A light sweet oil, Brent Crude is often more preferable than heavy sour crude. It can be easily refined into gasoline and diesel.
It is much more difficult to transport heavier types of crude oil because they can’t flow through pipelines as easily as Brent Crude. As such, Brent Crude is able to command a premium price for oil.
In general, two-thirds of the internationally traded oil is priced relative to Brent Crude.
Why trade Brent oil?
There are several major reasons to trade energy commodities, including Brent oil:
Oil commodities in an equity-only portfolio can lower the volatility, due to the absence of a correlation between the asset classes.
Commodities can serve as a safe haven in the times of global economic uncertainty and market turbulence, because they can retain their value.
Commodities’ intrinsic value is independent from currencies. They will often hold their value, even if a currency falls during the period of inflation.
Speculation on Brent oil prices
Commodities may be highly volatile, experiencing wild price swings. Trading Brent oil CFDs can become a good way to benefit from drastic oil price fluctuations.
- Choose a tenure and invest your capital sum minimum of N 200,000 or more for a direct credit of 30% returns every 6 months.
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- Liquidate or roll over your initial capital after tenure.
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