How is a cargo of oil sold?
«Brent»
The term “Brent” originates from the British Brent field and refers to a specific type of crude oil with particular qualities. To make “Brent” more representative of global production, it has been blended with crude from four additional fields: Forties (also in the UK sector), Oseberg, Ekofisk, and Troll. This has turned Brent into something of a theoretical benchmark — essentially an average of several commonly traded grades.
Three main factors determine the quality of a crude oil: its sulfur content, acidity, and API gravity (a measure of how light or heavy it is). Very few fields produce oil that is identical to Brent, but it has become the standard index to which other crudes are compared. In that sense, Brent is a bit like Greenwich Mean Time — a reference point based on a specific location, but used to coordinate the entire world.
Over time, Gullfaks crude has generally been valued slightly higher than Brent. This is partly because its qualities align well with what certain European refineries are calibrated to process. Other fields with similar properties include Johan Castberg and Alvheim.
«Dated»
The “dated” part of a Dated Brent contract means that the price per barrel is not fixed at the time of sale. Gullfaks oil is not sold at the spot price — i.e., the price right now. Instead, the final price is tied to the market rate on the day the cargo is expected to reach the buyer.
More specifically, the price used for Gullfaks sales is the Brent price five days after loading. That means neither buyer nor seller knows the final price at the time of the deal.
In addition, the two parties agree on a premium or discount (usually a premium in Gullfaks’s case) based on the oil’s characteristics and their relative bargaining power — in other words, who needs the deal more.
For example, if they agree on a $2 premium, the buyer will pay the Brent price on the fifth day after loading, plus $2 per barrel.
This system means that fluctuations in Brent prices affect the final price for Gullfaks crude — even if those price changes occur after the deal is signed.
At first glance, this might seem like it creates uncertainty for both sides. However, companies can hedge that risk through financial instruments, such as futures contracts, to lock in parts of the expected value.
The marketplace
These deals are made using a chat platform owned by Intercontinental Exchange, Inc. (ICE), a publicly traded American company that operates numerous financial markets and exchanges.
Buyers use the platform to track when oil is being loaded from different fields, and both sides typically have access to solid market intelligence.
Although ICE is a large, open marketplace, each transaction is negotiated one-on-one — either via phone or chat. These chats are not public, and companies generally have no incentive to disclose prices.
The traders selling oil on behalf of Equinor handle the company’s entire oil portfolio — as well as oil owned by the fully state-owned Petoro. They don’t specialize by field or crude grade, but manage all outbound cargoes.
The article is based on a interview with longtime Statoil trader Lise Gro Ekholdt (March 2025).