Crude Oil Benchmark

Glossary:

WTI (West Texas Intermedium) - WTI refers to oil extracted from wells in the U.S. It is light and sweet (low sulfur), a high quality crude oil. US as a big oil consumption country, coupled with the New York Futures Exchange in global influence, WTI crude oil futures is global benchmark of oil price. The public and the media usually say the number of dollars in oil, mainly refers to the WTI price.

Brent Blend - Similar to WTI, Brent is light and sweet crude oil too. At 23 June 1988, on London's International Petroleum Exchange (IPE) launched Brent crude oil futures contract, it been used as benchmark for the north-western Europe, North Sea, Mediterranean, Africa and Yemen and other countries and regions. Roughly two-thirds of all crude contracts around the world reference Brent Blend, making it the most widely used marker of all.

Dubai/Oman – This is a useful reference for oil of Middle Eastern crude. It is a slightly lower grade than WTI or Brent. This is benchmark of well-known OPEC (Organization of the Petroleum Exporting Countries) oil prices. It mainly export to Asian countries, therefore it tends to reflect the status of Asian demand for crude oil.

Source: IntercontinentalExchange (ICE) 

Oil and Gas Industry Activities

The oil and gas industry facilities and activities are broadly defined, according to their use in the oil and gas industry production stream:

Exploration:

Includes prospecting, seismic and drilling activities that take place before the development of a field is finally decided.

Upstream:

Typically refers to all facilities for production and stabilization of oil and gas. The reservoir and drilling community often uses upstream for the wellhead, well, completion and reservoir only, and downstream of the wellhead as production or processing. Exploration and upstream/production together is referred to as E&P.

Midstream:

Broadly defined as gas treatment, LNG production and regasification plants, and oil and gas pipeline systems.

Refining:

Where oil and condensates are processed into marketable products with defined specifications such as gasoline, diesel or feedstock for the petrochemical industry. Refinery offsites such as tank storage and distribution terminals are included in this segment, or may be part of a separate distributions operation.

Petrochemical:

These products are chemical products where the main feedstock is hydrocarbons. Examples are plastics, fertilizer and a wide range of industrial chemicals.

Shipping Glossary

Suezmax - The tanker which can pass through the Suez Canal fully loaded (120,000 -199,999 dwt.). Draft of 20m

Aframax - American Freight Rate Association - approximately 75,000 - 119,999 dwt. Draft of 14m.

Panamax - The tanker which can pass through the Panama Canal fully loaded (approximately 50 ,000 - 74,999 dwt.). Draft of 12m. New Panamax - Draft of 15m.