What is Brent crude?
Brent crude is a grade of crude oil that is extracted from the North Sea. Its price serves as a worldwide benchmark for oil. In the latest session, Brent settled at $116.72 a barrel, its highest settle since April.
Why it's in the news
The Dow fell more than 600 points on Friday as oil topped $100 a barrel, and Brent closed at its highest level since April. Renewed concern over the U.S.-Iran conflict drove the rise.
- Djia — Dow falls more than 600 points as oil tops $100 a barrel
Background
Brent crude is a type of crude oil, the unrefined petroleum that is turned into fuels such as gasoline and diesel. It is named for a North Sea oilfield and is traded in futures markets. Because many oil-producing countries sell their crude at prices tied to Brent, its price is widely watched as a global reference point. Traders also follow the West Texas Intermediate grade, the main U.S. Benchmark, which trades at a different price.
Brent is quoted in U.S. Dollars per barrel. A barrel is a unit of 42 U.S. Gallons. Futures contracts let buyers and sellers agree on a price today for oil delivered later. Prices move with supply, demand, and worries about conflict or disruption in oil-producing regions.
On Friday, Brent rose 3.1 percent to end at $116.72. West Texas Intermediate settled at $103.27 a barrel, up 3.8 percent. The increase followed reports that the United States and Israel might be preparing renewed strikes on Iran, part of a regional war that began in late February. Traders feared the U.S.-Iran conflict could flare up again. The rise in oil added to pressure on stocks that day, when the Dow Jones Industrial Average fell 1.23 percent, to 52,215.16, and the S&P 500 slipped 0.52 percent. Higher fuel costs also weighed on some businesses, such as discount retailers, whose profits are sensitive to diesel prices.
What people are asking
What is the Brent crude oil price today?
Brent ended the most recent session it was reported for at $116.72 a barrel, up 3.1 percent. That was its highest settle since April. Live prices change during trading, so check a current market quote for the latest figure.
What are Brent crude futures?
Brent futures are contracts to buy or sell Brent crude at a set price for delivery at a later date. They let producers, refiners, and traders manage the risk of price changes.
How is Brent different from West Texas Intermediate?
Both are benchmark grades of crude oil. Brent comes from the North Sea and is the main global reference, while West Texas Intermediate is the main U.S. benchmark. In the latest session, Brent settled at $116.72 and West Texas Intermediate at $103.27.
Why did oil prices rise?
Traders feared the U.S.-Iran conflict could flare up again after reports that the United States and Israel might be planning renewed strikes on Iran. Iran has said it is prepared to strike back.