Brent Crude Oil Futures Margin & Contract Specifications

What Are Brent Crude Oil Futures?

Brent crude oil is a light, low-sulfur crude oil. This type of crude has relatively low refining costs and a wide range of uses, making it suitable for producing gasoline, diesel, and jet fuel. As a result, Brent crude is widely regarded as the global benchmark for international oil pricing.

Brent Crude Oil Futures (B) are the standard Brent futures contracts traded on the Intercontinental Exchange (ICE). They feature extremely high trading volume and open interest. Although they are generally regarded as cash-settled, they include an Exchange for Physical (EFP) mechanism, which tightly links the futures market to the physical crude oil market.
The BZ contract typically has lower trading volume than the B contract.

Factors Affecting the Price of Brent Crude Oil

1. OPEC Production Policy

The Organization of the Petroleum Exporting Countries (OPEC) is the world’s largest oil-producing alliance, and its production quotas directly affect supply. If OPEC decides to increase output, the resulting supply expansion usually puts downward pressure on oil prices. Markets closely watch production trends in key oil-producing countries such as Saudi Arabia, Russia, and the United Arab Emirates, as well as OPEC’s monthly reports.

2. Production Increases from Non-OPEC Countries

With improvements in shale oil efficiency, crude oil production in countries such as the United States, Canada, and Brazil has remained near historical highs. This additional supply also influences Brent crude prices.
Investors often focus on U.S. Energy Information Administration (EIA) crude oil inventory data and monthly reports.

3. Global GDP Growth

If major economies such as China, the United States, or the European Union slow down, industrial demand for crude oil declines, leading to lower prices. As a result, markets monitor Purchasing Managers’ Index (PMI) data for the global economy, China, the U.S., and Europe to assess economic trends.

4. Energy Transition and Substitutes

The growing adoption of electric vehicles, along with increasing shares of renewable energy and nuclear power, is structurally weakening long-term demand for gasoline and refined fuels.

5. Seasonal Factors

Traditionally, summer is peak travel season, when gasoline demand is highest and prices tend to rise. Winter heating demand also increases crude oil consumption, causing noticeable seasonal fluctuations in oil prices.

6. Geopolitical Risks

Oil is often viewed as a geopolitical tool, and changes in geopolitical conditions can lead to sharp risk premiums. Developments in the Middle East, such as security in Persian Gulf shipping lanes, and the evolution of the Russia–Ukraine conflict are key variables for the oil market. Political instability in countries like Venezuela or production disruptions in Libya, while relatively small in terms of global output, can still trigger panic buying during sensitive market periods.

7. U.S. Dollar Exchange Rate

Brent crude is priced in U.S. dollars. When the dollar strengthens, oil becomes more expensive for buyers using other currencies, suppressing demand and typically putting downward pressure on prices.

8. Government Policies

Government policy stances can also influence oil prices. For example, the Trump administration tended to favor lower oil prices to help control inflation. Such policy signals can exert strong psychological pressure on the market, weighing on oil prices.

Brent Crude Oil Margin

How much money is needed to trade futures? At the beginning, the required margin is the initial margin. While holding a position, the margin after deducting floating profits and losses must remain above the maintenance margin; otherwise, a margin call will be issued. For day-trading margin, only half of the margin is required, provided the position is closed before the market closes.

Foreign Futures

Brent Crude Oil Contract Specifications

Here is a summary for traders of the contract specifications, exchange, trading hours, minimum price fluctuation, and available trading months for Brent Crude OilFutures.

Brent Crude OilLast Trading Day

Futures