Over the past hundred years, oil has become the most important raw material in the world. Prices for "black gold" are of great importance for the economy of any country. What are the oil brands? To answer this question, you need to understand the quality criteria of a given mineral.
Reasons for dividing into varieties
Each individual hydrocarbon field is a source of oil with unique characteristics. There is an almost uncountable number of variations of black gold in terms of physical properties. The main quality criteria are the density and sulfur content. Each country rich in hydrocarbon deposits supplies several brands of oil that differ in chemical composition to the world market. The need to establish clear benchmarks for energy prices on international trading floors has led to the emergence of so-called benchmarks. They are the most liquid and popular oil brands whose stock quotes play the role of a benchmark in the purchase and sale of lesser-known grades of black gold.
Quality criteria
The efficiency of its processing depends on the density of hydrocarbon feedstocks. According to this indicator, oil is divided into three types: heavy, medium and light. There is a system created by American experts to accurately measure the density of black gold in degrees. The most preferable for the refining process is light oil, since the production of various types of fuel from it is associated with minimal costs. The density of such grades is 30-40 degrees. The refining and refining of light oil brands results in relatively less waste and more products ready for sale on the fuel market. Naturally, black gold, whose density is in the range from 30 to 50 degrees, has an increased cost.
Processing difficulties
Heavy oil brands cannot be extracted to the surface by traditional methods and require additional costs at the production stage. Such grades of hydrocarbon raw materials are characterized by strong viscosity and the content of a large number of impurities: tar-asphaltene substances, sulfur compounds and metals.
The density of heavy oil brands ranges from 10 to 24 degrees on a scale created by the American Institute of API. This type of black gold is less beneficial for mining and processing companies. It is not possible to get a large number of technically valuable and expensive products from it: gasoline, aviation kerosene and diesel fuel. Light oil brands are better suited for this purpose.
Heavy hydrocarbon deposits prevail in the world. However, mining companies are not enthusiastic about the development of such fields, preferring traditional light oil.
Chemical composition
The sulfur content also has a direct impact on the complexity and cost of preparing ready-to-eat foods from raw materials. The presence of this chemical in natural oil ranges from 0.1% to 8%. Sulfur compounds cause serious environmental damage. In many countries, the maximum permissible level of their content in automobile fuel is strictly regulated by law.
Purification of fuel from sulfur is a complex and expensive process. What oil brands are there to avoid such difficulties during refining? Varieties of black gold containing less than 0.5% sulfur compounds do not require significant effort to clean from harmful impurities. Such brands of oil are called "sweet."
Reference grades
In the world there is a very limited number of large international energy trading platforms, which are attended by global players. One similar market is located on the European continent, in the capital of Great Britain.
At the London Futures Exchange, transactions are underway to buy and sell a contract for Brent crude oil. Currently, it is the most liquid black gold grade in the world. Another major exchange is located in the United States in the city of Chicago. It trades futures for Texas-based WTI crude oil. In the US energy market, this brand has the same position as the Brent blend in Eurasia.
As it is easy to see, reference grades of black gold are not geographically associated with large hydrocarbon deposits, but with developed financial markets. Prices for less popular oil brands are based on Brent and WTI quotes. The cost of the reference grade is considered basic. Allowances or discounts in relation to it are due to the difference in quality.
Wti
The abbreviation used to designate one of the main reference grades of crude oil, stands for "West Texas Average". Its density is 40 degrees, the sulfur content is 0.5%. This light oil is perfect as a raw material for the production of gasoline. Its stock quotes serve as the main reference point for prices for "black gold" in the United States. Due to its low sulfur content, the WTI brand is sometimes referred to as the “Texas Sweet”.
Brent
The main European reference variety is mined in the North Sea, between the coasts of Scotland and Norway. Its density is 38 degrees, the content of sulfur compounds is 0.37%. Brent is a mixture of several grades of oil extracted from offshore fields. The production volume of this brand does not exceed one million barrels per day, which is a small amount by world standards. Despite this, futures for the North Sea mix set trade records. Brent plays the role of a reference grade for 70% of existing oil brands. What does it mean? Such a strange situation is explained very simply: futures are used primarily for speculative purposes and do not lead to a physical supply of raw materials. This circumstance becomes the reason for discussions about the justification for maintaining the status of the reference variety for the North Sea mixture of Brent.
Dubai
The leading position in the extraction of black gold on the planet is occupied by the countries of the Persian Gulf. It is not surprising that the Dubai brand, supplied to the world market from the United Arab Emirates, is considered the reference variety. This oil is of the middle type. Its density is 31 degrees, the sulfur content is 2%.
Oil brands in Russia
Six grades of “black gold” are mined in the Russian Federation: Urals, Vityaz, Sokol, Siberian Light, ESPO and Arctic Oil. Their prices are determined on the basis of quotations of the reference Brent variety. The easiest and highest quality is the Vityaz brand mined on Sakhalin Island. Its density is 41 degrees, the sulfur content is 0.18%. Vityaz oils are slightly inferior in quality to Sokol, Siberian Light and ESPO. Their density varies from 35 to 37 degrees, the sulfur content is 0.23-0.62%. The heaviest Russian oil is Arctic Oil, which is extracted from the offshore field.
The budget of the Russian Federation is calculated based on the price of the West Siberian brand Urals. This is an oil of medium density (31 degrees) with a high sulfur content (1.3%).