Classification of oil.

Oil is classified into several main groups, designed to standardize this energy resource for exchange trading.

Classification is primarily influenced by the oil's composition, specifically the amount of various impurities, which determine the so-called grade.

The main grades of oil traded on exchanges are Brent, WTI, and Urals. These designations are deciphered as follows:

Brent is the most common grade of oil, sometimes referred to as the benchmark. It is the basis for pricing other grades of oil, by subtracting discounts or adding premiums to higher-quality grades.

Among other things, Brent is also one of the most expensive grades. The main deposits are located on the European shelf. Its sulfur content is only 0.37%, which is not high.

WTI is similar in properties to the previous grade, but since WTI is produced in North America and requires expensive transportation to the processing site, its price is usually lower.

Urals is a heavier grade of oil produced in Russia; its sulfur content fluctuates between 0.61 and 1.8%. However, it has lower liquidity, and the number of contracts concluded in this case is much lower than for the two previous grades.

In addition to those listed, there are many other grades of oil: Kirkuk is produced in Iraq, Light Sweet is produced in the USA, and Iran Heavy is produced in Iran.
Production volumes are not as large and therefore do not have a decisive influence on the price of oil.

Oil can be classified by composition, location of production, and production method. Sometimes, a single country can export several grades of oil at once.

The specifics of oil trading are described in the article " How to sell and buy oil on the exchange ."