Brent Crude Oil

In 2023, the Brent oil benchmark, a key international oil price marker for global crude oil underwent a substantial change. It incorporated another key benchmark, West Texas Intermediate oil from Midland, produced in the US and sold into European and Asian markets. Brent is used to set prices for over 70 per cent of global crude oil, so this fundamental change in the composition of the benchmarks is making some observers question its future development and even its survival. Lessons from the past are very important for the future, particularly in this case.

This book revisits the history and genesis of the Brent oil benchmark and how it came to dominate the global oil market for oil. With chapters written by the individuals involved in trading and shaping the market, it brings the richness and texture to the usual historical narrative by recalling the events, companies and people who shaped its history. It introduces the historical background to the international oil markets and the reasons for a move from OPEC-set prices to oil benchmarks. It discusses the role of the North Sea in the international oil markets, as well as the role of the British government in the British national oil and gas monopoly (British National Oil Corporation or BNOC). The development of the North Sea oil, which coincided with the liberalisation policies in the UK and US, is also discussed, alongside the challenges of the oil exchange (International Petroleum Exchange) in London, the home of Brent and looks at the failures, attempted takeovers, and its eventual sale to the Intercontinental Exchange (ICE). It finally discusses the growing market ecosystem of the price reporting agencies (PRAs), which play a key role in establishing the value of the Brent benchmark.

In this fascinating book, Adi managed to gather a team of experienced ‘old hands’ who participated in creation and development of the Brent market. Their chapters are a great read and offer lessons for the further development of this most important oil benchmark in the world.

Pierre Andurand, Chief Investment Officer, Andurand Capital, UK

‘The book offers a unique insight into the origins of the Brent market and its evolution over the years. It is an essential reference for anyone interested in a deeper understanding of the process of oil price formation and the links between the various Brent layers’.

Dr Bassam Fattouh, Director of the Oxford Institute for Energy Studies, UK

“A fascinating read and a reminder that even the most important markets in the world are created by and sustained by the interplay between people, many larger-than-life. Adi should be congratulated for bringing this story together before it is covered up by the sands of time.”

Paul Horsnell, Head of Commodities Research at Standard Chartered Bank, and co-author of the seminal book on Brent: ‘Oil Markets and Prices’

‘With the help of expert contributors, this book tells the story of the 40+ year journey of Brent and how it remains so important despite numerous challenges.  It is a book which is required reading for those of us who worked in or with the Oil & Gas Trading industry, to anyone who wants to understand how a commodity benchmark is formed and maintained, and to anyone who uses energy and would like to understand the effect of Brent on their daily lives.’

Mark Quartermain (former VP, Crude Oil Trading & Supply for Shell and co-founder of ‘Twenty Plus Ten’ Board & Executive Advisers).

This book provides a comprehensive, rigorous, and fact-based analysis of the history and possible future evolution of Brent on the global scene. It is written by high caliber experts who each have afew decades of operating experience in oil trading and who provide a very authoritative insider view of the functioning and outlook for the “new” Brent oil benchmark. It is a cracking read, and a must for anyone interested in international oil trading. 

Prof. Manfred Hafner, Adjunct Professor of international energy, The Johns Hopkins University School of Advanced International Studies (SAIS-Europe), Italy and SciencesPo Paris School of International Affairs (PSIA), France

This is an important book. Dr Imsirovic has put together a unique set of contributors to tell the history of the Brent benchmark and its makers. As the world seems poised to once again recalibrate the world oil pricing system, the chapters offer timely historical guidance on what enabled the North Sea oil market to flourish. Combining keen general observations with beautiful personal recollections drawn from ex-traders, this volume should become required reading for anyone interestedin understanding how Brent came to be the world's most important price.

Dr Jack Seddon, Associate Professor of International Political Economy in the Faculty of Political Science and Economics at Waseda University, Japan.

Adi Imsirovic is a Senior Research Fellow at the Oxford Institute for Energy Studies (OIES) and a director of Surrey Clean Energy, an energy consultancy. He has over 35 years of experience in the energy markets, most of it as an oil trader. He is also Fulbright Scholar and was an Adjunct Research Fellow at the Kennedy School of Government, Harvard. He has previously published the book Trading and Price Discovery for Crude Oils (2021) with Palgrave Macmillan.