In the last decade, the topic of energy resources has been increasingly tackled by the media. Oil is no exception. The cost of this type of hydrocarbon is formed depending on the trading exchange, as well as its grade. Brands of oil are characterized by chemical composition and place of origin, which directly affects their cost.
general information
A grade or brand of oil is a qualitative characteristic of a raw material that is mined in one field, which differs from the others in its composition and homogeneity. Oil in different wells has characteristics unique to it, and therefore there is a need for its classification. To simplify the export system, a conditional division into light and heavy oil was adopted.
Worldwide, more than 20 brands are mined annually. For example, the main export brands of oil in Russia are Urals heavy oil and Siberian Light light oil, while a total of 5 grades are produced. There are over a dozen brands in the United States. Due to this diversity, not all of them can be sold on international exchanges. Therefore, the price of each brand is determined relative to the marker varieties - British oil Brent, American WTI and the Middle East Middle East Crude.
The cost of each brand of oil is determined by a discount or premium in relation to the marker grade, depending on the quality of the raw materials. For example, heavy oil with a high content of impurities and sulfur will be traded cheaper than the same Brent or WTI.
Characteristics of raw materials
As a rule, oil is described as a black oily liquid, but this definition is not true in all cases. The color scheme can vary from black to yellow and transparent.
The most important characteristics are also the viscosity and melting coefficients . Some grades of oil may solidify at low temperatures, others remain liquid under all weather conditions. Due to this heterogeneity of characteristics, the conventional division of varieties into light, medium and heavy is accepted.
In its pure form, this raw material is practically not used, therefore, oil is processed to obtain a marketable product. The speed and efficiency of processing is directly proportional to the density of raw materials and the content of sulfur and impurities.
Light varieties are more expensive because they produce products such as gasoline, diesel fuel, kerosene. From heavy grades, fuel oil and fuel for furnaces are used, which are used less often, so their cost is lower.
Interesting Facts
Until 1973, the cost of "black gold" was not more than $ 3. The price increased 4 times after the ban on the export of raw materials from Arab countries. At the beginning of the 80s, during the crisis in the Middle Eastern countries, the cost fluctuated between 15 and 35 dollars.
Oil with a low sulfur content is called "sweet", and with a high - "sour". She got this name because in the 19th century, oil workers tried it. The costs of processing acidic oil are significantly higher than in the processing of sweet. Therefore, sweet is always in price.
A distinctive feature of the exchange in New York is that it quotes the dollar price of raw materials per barrel, and for products from it - in cents per gallon.
An international oil exchange operates in London, where over 50,000 futures for various brands of oil, as well as Brent mixtures, are traded during the day.
Physical oil supplies are carried out only on 1% of the concluded futures contracts.
Oil brands in Russia
In total, 6 grades of oil are exported from Russia.
Urals is mined in the Khanty-Mansi Autonomous Okrug, as well as in the Republic of Tatarstan. This brand is characterized by a high content of sulfur and heavy hydrocarbon compounds. The price of Urals oil is determined by its discounting to the North Sea grade Brent. This grade is obtained by mixing West Siberian oil with Volga oil, which is why its quality suffers. In the last decade, attempts have been made to exclude Tatarstan raw materials from Urals. The price of Urals oil is formed on the RTS Commodity Exchange.
Siberian Light is mined in the Khanty-Mansi Autonomous Area. The sulfur content in it is almost 3 times less than in Urals.
Arctic Oil is produced in the shelf of the Pechora Sea. This is the first Russian oil field located in the Arctic Ocean. A distinctive feature of this brand of Russian oil is its high density and high sulfur content. Oil is extracted 60 km from the coastal zone from a stationary platform.
Sokol is low in impurities. It is being explored on Sakhalin Island. Export is carried out through the Khabarovsk Territory.
ESPO is characterized by low density and low sulfur content, mined in Eastern Siberia. It is transported via the ESPO pipeline.
Vityaz is a Sakhalin oil grade similar in quality to Omani light oil. Exported via the Trans-Sakhalin oil pipeline.
World oil brands: global classification
The entire world classification of "black gold" is based on two brands - Sweet crude oil and Light Sweet crude oil.
Sweet crude oil - raw materials with a sulfur content of not more than 0.5%, as well as hydrogen sulfide and carbon dioxide. Currently, this brand is used in the production of gasoline.
Light Sweet crude oil is low in wax. Viscosity and density may vary.
Based on the characteristics of these varieties, the following designations began to be attributed to oil brands:
- light (high density);
- crude (low wax content);
- heavy (low density);
- sweet (low sulfur).
Reference grades
In total there are 3 brands of oil in the world, which are considered to be standard.
Brent (crude) - North Sea raw material of medium density, contains up to 0.5% sulfur impurities. It is used in the production of medium distillers, as well as gasoline. The price of Brent crude oil is the basis for pricing more than a third of all other varieties in the world.
WTI is mined in the US state of Texas. Has a density higher than Brent, sulfur content - up to 0.25%.
Dubai Crude - oil from the UAE. Also called Fateh. It has a low density. Contains up to 2% sulfur impurities.
Varieties included in OPEC export basket
OPEC (Organization of Petroleum Exporting Countries) uses the OPEC basket index when calculating the value of a particular grade. To date, the OPEC basket includes 11 brands of "black gold":
- Saharan Blend (Algeria);
- Es Sider (Libya);
- Arab Light (Saudi Arabia);
- Basra Light (Iraq);
- Bonny Light (Nigeria);
- Iran Heavy (Iran);
- Kuwait Export (Kuwait);
- Murban (United Arab Emirates);
- Qatar Marine (Qatar);
- Girassol (Angola);
- Merey (Venezuela).
Oil is the backbone of the economies of most countries, both developing and developed. Oil exploration is carried out both on the continents and on the shelves of the oceans. In the world there are more than 20 different varieties of "black gold". At the same time, each variety is distinguished by its unique chemical composition. The main reference brands affecting global pricing are Brent, WTI and Dubai Crude. Grades of Russian oil for export: Urals, Siberian Light, Arctic Oil, Sokol, ESPO, Vityaz. Futures contracts for the supply of raw materials are concluded on world commodity exchanges. These are mainly the New York and London exchanges. In Russia, the RTS exchange operates (Moscow).