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200 different varieties
- There are almost 200 different varieties of oil available for sale today, but the three most common and most talked about are West Texas Intermediate (WTI), Brent Blend and OPEC Basket.
www.petro-online.com/news/fuel-for-thought/13/breaking-news/an-introduction-to-the-different-types-of-crude-oil/31101An Introduction to the Different Types of Crude Oil Petro Online
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Dec 2, 2009 · Crude oil is not one indistinguishable substance. There are in fact 4 main types, from light oils such as gasoline and jet fuel to heavy fuel oils. Brent crude and WTI (West Texas Intermediate)...
- Editorial Dept
- 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.
The three most quoted oil products are North America 's West Texas Intermediate crude (WTI), North Sea Brent Crude, and the UAE Dubai Crude, and their pricing is used as a barometer for the entire petroleum industry, although, in total, there are 46 key oil exporting countries.
A benchmark crude or marker crude is a crude oil that serves as a reference price for buyers and sellers of crude oil. There are three primary benchmarks, West Texas Intermediate (WTI), Brent Blend, and Dubai Crude. Other well-known blends include the OPEC Reference Basket used by OPEC, Tapis Crude which is traded in Singapore, Western Canadian ...
Apr 21, 2022 · The EPA categorizes crude oil into four main types of crude oil: Class A, Class B, Class C, and Class D. These are important for learning more about general toxicity and physical state changes: Class A : Most refined products and many high-quality, light crude oils are included in Class A.
- Jacqueline Demarco
But not all crudes are alike. There are three primary qualities that differentiate one oil from another: Weight, Sweetness, and TAN count. Weight of Crude: Light oil vs. heavy oil. Heavy oil evaporates slowly and contains material that will be used to make heavy products like asphalt.
Jul 25, 2014 · There are almost 200 different varieties of oil available for sale today, but the three most common and most talked about are West Texas Intermediate (WTI), Brent Blend and OPEC Basket. WT I is one of the highest quality and, as a result, most expensive types of crude oil available.
