UK oil definition

UK oil

UK Oil is another name for Brent Crude Oil. Brent Crude is the leading benchmark for global oil prices, akin to two-thirds of all oil pricing. Brent Crude oil is produced near the Baltic Sea and is typically refined in Northern Europe.

OPEC, a group of the 13 most powerful oil-rich countries, use Brent Crude as their pricing benchmark.

Brent Crude vs WTI

Brent Crude and West Texas Intermediary (WTI) are the two main benchmarks for oil production. Although Brent Crude makes up a majority of oil sales across the world, WTI is significant for its production in the United States and historically cheap pricing model due to the use of fracking.

WTI’s production is landlocked compared to Brent Crude’s production near the Baltic Sea, so the transportation for WTI is considerably more expensive.

Geopolitical conflicts are more likely to raise the price of Brent Crude compared to WTI because of its location among multiple European nations and proliferation among OPEC nations. Despite these setbacks, Brent Crude remains the leading indicator of worldwide oil prices.

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