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Brent Crude Oil Last-Day Financial 
 

Brent Crude Oil – Last Day (Financial) futures are an outright crude oil contract between a buyer and seller. The contract is based on a light sweet North Sea crude oil that serves as an international benchmark grade, and it also trades as a differential to the bellwether light, sweet crude oil futures contract

Things to know:

  • Financially settled, based on the ICE Brent Crude Oil Futures 1st nearby contract settlement price on the final trading day for the delivery month
  • Traded via open outcry and off-exchange, for clearing only, as an exchange of futures for swaps (EFS) or exchange of futures for physicals (EFP) transaction
  • Five types of options: calendar spread, American-style, European-style look-alike, WTI-Brent Crude spreads, average price

About Brent Crude Oil
Brent blend production runs approximately 500,000 barrels a day. Most is refined in Northwest Europe, but significant volumes move to the U.S. Gulf and East Coasts and to the Mediterranean from the shipping terminal at Sullom Voe in the Shetland Islands. The producing companies trade most of the volume on a spot basis with virtually no formal term contracts.

Complementing the Brent crude oil futures contract are an options contract, calendar spread options contracts, and an options contract on the Brent/West Texas Intermediate crude oil spread.

 
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