What is the difference between the price of a barrel of WTI oil and Brent crude oil?

Trading is an activity that involves knowing different information to make sure you make the best decisions. In particular, traders wishing to speculate on commodities should be aware of the factors that may influence the price of these assets. With regard to oil, it is particularly important to know the difference between the price of a barrel of WTI oil and Brent crude oil.

Oil or black goldOne of the

raw materials, oil, also known by the evocative nickname of black gold, is simply unavoidable. To better trade this asset, it is essential to be informed about fluctuations in the price of crude oil. This depends on various factors, including refining and density. Among the most widely used are WTI and Brent, which are the reference crude oils in the United States and Europe respectively.

Knowing WTIWTI

or West Texas Intermediate

oil

is a crude oil from the United States (specifically Texas). The extraction of this oil, also known as Texas Sweet Light, is therefore carried out in the North American region. This oil is the benchmark in the country in terms of quality, but also for determining prices on the Nymex (New York Stock Exchange).It is no coincidence that WTI is the basis for this oil, which has an optimal quality as it contains only 0.24% sulphur on average. It is then a particularly easy material to refine and is less polluting compared to other oils available on the market. Because of its light weight, WTI is also known as Light Sweet Crude Oil. It should also be noted that it is considered to be softer than its counterpart, Brent, that WTI is among the best crude oils on the planet. In addition, the cost of production is reduced and the quantity produced is higher. It should be noted that WTI is an oil with a smaller presence on the international market, it is mainly sold on local trade in terms of hydrocarbons.

What is Brent?

For its part, Brent is therefore the reference crude oil at European level. Its name comes from an oil field in the North Sea. Currently, oil called “Brent” is the combination of oils from several oil fields in the North Sea. It should be noted that, even if the deposit has only been in production for 45 years, it would already be at the end of production.When compared to WTI, Brent has a higher sulphur content, making it a more polluting and lower quality oil. It can nevertheless be used to produce fuel (petrol, diesel and kerosene) after refining on European and Mediterranean units. Even if production is limited, it is the reference crude oil in Europe and its price influences the price of nearly two thirds of world production.

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