Lubricant Oil

How Does Oil Trading Work?

Oil is found in underground reserves around the world. Each region’s oil is slightly different to another. We offer a high quality range of lubricant oil and gas product to what the customer’s preferences.

And as an authorized distributor of ADNOC oil and lubricants, ADNOC Lubricant Plant offers a high quality products ahead of the changing market. The plant is capable of producing a full range of engine oils, hydraulic fluids, gear oils and specialty lubricants. The base oils used at the plant originate from the Murban Bab Oil field, one of the largest oil fields in the world, and it gives a distinct advantage in quality in its lubricant production.

To accommodate for these variations, there are multiple global marketplaces or ‘benchmarks’ that set the price for each crude (unrefined) Oil.

Key Oil Benchmarks

There are many benchmarks that are used as reference prices for crude oil. The main ones are Brent, WTI, and Dubai/ Oman.

Brent (EB) - Brent or Brent Crude covers roughly 66% of all Oil contracts. This oil is low in sulphur, classifying it as “light” or “sweet”, making it ideal for the production of Gasoline and Diesel. In addition, much of this is extracted from the North Sea from rigs that are already in the water, making it easy to ship.

West Texas Intermediate (CL) - Also referred to as WTI, is very “sweet”, making it ideal for gasoline refining, and is extracted within the United States. It is mostly extracted from land wells, so it is more expensive to export.

Dubai / Oman - The main purchase point for Asia, this oil is “sour” meaning it is high in sulfur and a lower grade of crude Oil than what is found elsewhere. It is still highly sought after and a key benchmark.