What is WTI and Brent?

What is WTI and Brent?

West Texas Intermediate (“WTI”) and Brent are the two contract types that dominate futures markets for crude oil. WTI is considered the benchmark for US-produced crude oil, while Brent is considered an international benchmark, based on crude oil extracted from the North Sea.

Is Saudi oil Brent or WTI?

Nearly all oil traded outside America and the Far East is priced using Brent as a benchmark. WTI is the main benchmark used for pricing oil imports into the USA. Dubai-Oman is used as a benchmark for Gulf crudes (Saudi Arabia, Iran, Iraq, the UAE, Qatar and Kuwait) sold in the Asia-Pacific market.

Is Brent better than WTI?

Despite the high quality of West Texas Intermediate, WTI is currently trading at more than a $7.00/bbl discount to another major oil benchmark: Brent crude. ... Although considered both light and sweet, Brent is slightly heavier than WTI, with an API gravity of 38.06 and a sulfur content of 0.37%.

Are WTI and Brent correlated?

Specifically, the Pearson correlation coefficient between spot returns of Brent and WTI is 0.60047, which indicates that Brent spot returns are slightly positive correlated to WTI spot returns.

What kind of oil does Saudi Arabia produce?

We produce five different grades of crude oil. These are: Arabian Heavy, Arabian Medium, Arabian Light, Arabian Extra Light, and Arabian Super Light.

Who buys Brent Crude oil?

Brent crude is traded on the Chicago Mercantile Exchange -- or CME Group exchange -- as "BZ" and on the Inter Continental Exchange (ICE) under the symbol "B." One Brent crude contract controls 1,000 barrels, or 42,000 U.S. gallons, of oil.

What oil does OPEC produce?

OPEC member countries produce about 40 percent of the world's crude oil. Equally important to global prices, OPEC's oil exports represent about 60 percent of the total petroleum traded internationally.

Who buys Brent crude oil?

Brent crude is traded on the Chicago Mercantile Exchange -- or CME Group exchange -- as "BZ" and on the Inter Continental Exchange (ICE) under the symbol "B." One Brent crude contract controls 1,000 barrels, or 42,000 U.S. gallons, of oil.

Why is it called Brent crude?

Originally Brent Crude was produced from the Brent oilfield. The name "Brent" comes from the naming policy of Shell UK Exploration and Production, operating on behalf of ExxonMobil and Royal Dutch Shell, which originally named all of its fields after birds (in this case the brent goose).

Who owns Brent crude oil?

CME Group Following the OPEC oil crisis of the 1970s, crude oil commodities began trading on the futures market. Brent futures are traded on the New York Mercantile Exchange (NYMEX) It is owned by CME Group, one of the largest in the United States under the symbol BZ.

What does WTI stand for in finance?

• WTI stands for West Texas Intermediate. Suggest new definition. This definition appears very frequently and is found in the following Acronym Finder categories: Organizations, NGOs, schools, universities, etc.

What does WTI mean?

• West Texas Intermediate (WTI) is a light, sweet crude oil that serves as one of the main global oil benchmarks. It is sourced primarily from inland Texas and is one of the highest quality oils in the world, which is easy to refine. WTI is the underlying commodity for the NYMEX's oil futures contract.

What is Brent crude futures?

• Brent Crude Futures. This enables it to guarantee the financial performance of every contract registered with it by its members (the clearing members of the exchanges) up to and including delivery, exercise and/or settlement. ICE Clear Europe has no obligation or contractual relationship with its members' clients who are non-member users...

What is WTI crude oil?

• WTI is a medium crude oil, with an API gravity of around 39.6 and specific gravity of about 0.827, which is lighter than Brent crude . The API rates Light oil as 41 Degrees API. WTI contains about 0.24% sulfur thus is rated as a sweet crude oil (having less than 0.5% sulfur), sweeter than Brent which has 0.37% sulfur.