West Texas Intermediate oil:
It describes a light-weight oil with relatively low sulfur. While it’d be produced in West Texas, the WTI designation are often designated to any crude which will meet the standards of being a light-weight sweet crude with the “light” aspect being defined as API 41 gravity and sulfur content of approximately 0.4%, which would make it “sweet.”
WTI is that the crude that’s the idea for the crude contract on the NYMEX division of the CME. The delivery point for that crude isn’t actually in Texas; it’s at the pipeline and tank gathering point of Cushing, Oklahoma. Crudes that meet the essential specifications of WTI are often delivered into the contract albeit they’re not produced in West Texas.
WTI was the primary actively-traded crude contract, launched on NYMEX in 1983. It was considered the key benchmark for several years until it had been disp
laced gradually by the Brent contract on what’s now ICE. WTI fell far out of favor when the lack to urge crude out of Cushing to the Gulf of Mexico became a significant problem. Its value against Brent plummeted. However, new pipeline projects have eased that issue but Brent remains considered the worldwide benchmark.
Brent Crude Oil:
Brent crude was initially a term that mentioned oil beginning of the Brent field within the U.K. sector of the North Sea. While that’s still one among its definitions, it now encompasses a spread of North Sea crudes–Oseberg, Forties, Ekofisk and Brent–deliverable against a Brent contract obligation. because it may be a waterborne crude and may move anywhere, it’s considered the worldwide crude benchmark.
Brent crude is slightly lighter than WTI. Its sulfuric content is often higher or lower depending upon the grade in question.
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