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West Texas Intermediate
- West Texas Intermediate is the benchmark for the U.S. light oil market and is sourced from U.S. oil fields. Both Brent Crude and WTI are light and sweet, making them ideal for refining into gasoline.
www.investopedia.com/ask/answers/052615/what-difference-between-brent-crude-and-west-texas-intermediate.aspBrent Crude vs. West Texas Intermediate (WTI): The Differences
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May 16, 2018 · The main comparative light crude oil benchmark in North America is a light crude oil product at Cushing, Oklahoma, known as West Texas Intermediate (WTI). When comparing the two benchmarks, the combination of higher quality, and closer/better market access results in WTI having a higher price than WCS.
- The Differences in Crude Oil
- The Main Benchmarks
- Importance of The Derivatives Market
- The Bottom Line
There are different types of crude oil—the thick, unprocessed liquid that drillers extract below the earth—and some are more desirable than others. For instance, it’s easier for refiners to make gasoline and diesel fuel out of low-sulfur or “sweet” crudethan oil with high-sulfur concentrations. Low-density, or “light” crude is generally favorable t...
There are dozens of different oil benchmarks, with each one representing crude oil from a particular part of the globe. However, the price of most of them are pegged to one of the following three primary benchmarks:
Crude Futures
There was once a time when buyers would primarily purchase crude oil on the spot market—that is, they’d pay the current price and accept delivery within a few weeks. However, after the oil crisis of the late 1970s, refiners and government buyers began looking for a way to minimize the risk of sudden price increases. The solution came in the form of crude oil futures, which are tied to a specific benchmark crude. With futures, buyers can lock in the price of a commodity several months, or even...
Crude Options
In addition to futures, market participants can also invest in options that are linked to a particular crude benchmark. These derivatives are another important way to help mitigate price risk. Should the value of a certain crude marker skyrocket, the owner of a call optionwould have the right— though not the obligation—to buy a specific number of barrels at a pre-determined price.
Speculative Trading
However, not all futures or options tied to a crude benchmark are used for hedging purposes. Speculators are also major players in the market, betting that changes to supply or demand will drive the price of certain crude products higher or lower. Investors can also gamble on what will happen to the difference, or spread, between two benchmarks. Participants typically analyze the fundamentals of a specific oil source and guess whether the gap between two markers will widen or close. Like trad...
The market for crude is incredibly diverse, with the quality and original location of the oil making a major impact on price. Because they’re relatively stable, most crude oil prices worldwide are pegged to the Brent, WTI, or Dubai benchmarks.
May 4, 2024 · West Texas Intermediate (WTI), a light, sweet crude oil, is one of three global oil benchmarks. Sourced primarily in inland Texas, WTI is one of the world's highest-quality oils.
Aug 30, 2021 · Brent Crude is the benchmark used for the light oil market in Europe, Africa, and the Middle East, originating from oil fields in the North Sea between the Shetland Islands and Norway. West...
Published daily since 1987, Platts Dated Brent by Commodity Insights is a benchmark assessment of the price of physical, light North Sea crude oil. We assess the price for dated crude streams in the North Sea: Brent Ninian Blend (from which Dated Brent takes its name), Forties Blend, Oseberg, Ekofisk and Troll.
The ICE West Texas Intermediate (WTI) Light Sweet Crude Oil futures contract offers participants the opportunity to trade the highly liquid U.S. crude oil benchmark in an electronic marketplace.
WTI (West Texas Intermediate, a US light sweet crude oil blend) futures provide direct crude oil exposure and are the most efficient way to trade oil after a sharp rise in US crude oil production. Use WTI Crude Oil futures to hedge against adverse oil price moves or speculate on whether WTI oil prices will rise or fall.
