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What does the spread between WTI and Brent mean?
The WTI-Brent spread is the difference between the prices of two types of crude oil, West Texas Intermediate (WTI) on the long side and Brent Crude (Brent) on the short side. As both oils are very similar, their spread shows signs of strong predictability and usually oscillates around some average value.
Which oil is better Brent or WTI?
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. Proposed Chinese import tariffs on US energy products saw WTI underperform Brent for a period.
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?
Brent futures contracts on the ICE use the US dollar as the main currency. One contract of Brent futures equals 1,000 barrels of oil, which is the equivalent of 159m3. Apart from futures, investors also trade options that are linked to North Sea Brent Crude.
What is difference between Brent crude and WTI?
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.
Why is Brent used as a benchmark?
Key Points. The Brent benchmark is used to price over three-quarters of the world’s traded oil, as one of the most liquid crude grades. It is processed by refiners around the world. This confers an advantage over other crudes which are landlocked and regional.
What is Brent crude price?
Brent Crude is a major trading classification of sweet light crude oil that serves as a major benchmark price for purchases of oil worldwide. This grade is described as light because of its relatively low density, and sweet because of its low sulphur content.
How do I invest crude oil?
The best way for most investors to invest in crude oil is through the companies that explore for, produce, transport, refine, and sell crude. Some of these companies, such as exploration and production companies, tend to rise in value when crude climbs and fall in value when crude drops.
What are the types of crude oil?
With that said, the four main types of Crude Oil are: Very light oils – these include: Jet Fuel, Gasoline, Kerosene, Petroleum Ether, Petroleum Spirit, and Petroleum Naphtha. They tend to be very volatile, evaporating within a few days which in turn evaporates their toxicity levels.
What is the ticker symbol for Brent crude oil?
The stock symbol for crude is WTI, which stands for West Texas Intermediate. Used as a benchmark in oil pricing, WTI is also referred to as Texas light sweet oil.