<p>Brent Crude is a major global benchmark for the price of light, sweet <a href="/NewSite/encyclopedia/crude-oil/" class="ency-link">crude oil</a>, used to set the value of roughly two‑thirds of the world’s internationally traded petroleum. Sourced from oil fields in the North Sea, Brent serves as a reference point for contracts, futures, and spot trades, influencing everything from gasoline pump prices to national budget revenues.</p>

<h2>How It Works</h2>
<p>The Brent benchmark is derived from a blend of crude oil produced at several offshore platforms in the Brent, Forties, Oseberg, and Ekofisk fields. Traders and analysts calculate a daily price based on the average of spot transactions for cargoes loading within a specified delivery window, usually the next month. This price is published by price‑reporting agencies such as S&P Global Platts and Argus, and it underpins Brent crude oil futures traded on exchanges like ICE Futures Europe.</p>
<p>Market participants use Brent as a settlement price for futures contracts, options, and over‑the‑counter swaps. When a trader buys a Brent futures contract, they agree to purchase or sell a defined volume of Brent‑grade oil at the contract’s expiration price, which tracks the underlying Brent spot market. The benchmark’s transparency and liquidity make it a reliable gauge for hedging production risk and speculative positioning.</p>

<h2>Why It Matters</h2>
<p>Brent Crude’s price influences global energy costs because many countries index their oil imports and export revenues to it. For example, a European refinery that purchases Brent‑linked crude will see its feedstock costs rise or fall in line with Brent movements, directly affecting diesel and gasoline pricing at the pump. Additionally, governments that rely on oil‑related taxes adjust fiscal forecasts based on Brent trends, making the benchmark a key indicator for both market traders and policymakers.</p>