Difference Between West Texas Intermediate(WTI) Crude oil and Brent Crude Oil

Despite seeming to have only a few options to choose from when it comes to pumping gas in your car, did you know that there are actually more than 160 different internationally traded crude oils? What makes each type different, is the characteristics, quality and price. Two of the most commonly traded types of crude oil are WTI, or West Texas Intermediate, and Brent. So is one better than the other in terms of quality? Which one emerges as the winner in terms of price? Read on to find out.

Firstly, there’s the WTI type of crude oil, which is also known as the Texas Light Sweet. Generally, WTI is used as a benchmark in oil pricing. In the stock exchange market, WTI commands a higher price as compared to Brent crude, but there was one instance when the latter took over WTI, probably due to a temporary shortage of refining capacity.

In terms of quality, WTI is considered as a light crude, which contains about 0.24% sulphur. As such, it gained a ‘sweet crude’ rating which is better when compared to Brent. WTI is refined in the Midwest and Gulf 370.

Coast regions in the US.

On the other hand, Brent crude is referred to as a ‘sweet light crude’, because of its innate properties. Sourced from the North Sea, Brent is used to price about two-thirds of the internationally crude oil supplies in the world. This type of crude oil is ideally used in making gasoline and middle distillates, which are mostly produced in the northwestern part of Europe.

When you compare the prices of these two types of crude oil, WTI is generally higher, although both of their valuesin the trading market can vary greatly, especially when traded on a daily basis.

Summary:

1. WTI is a sweet crude oil, while Brent is a sweet light crude oil.

2. WTI is used to refine larger portions of gasoline, while Brent is used for making both gasoline and middle distillates.

3. WTI generally commands a higher price, while Brent commands a lower price in the trading market.

4. WTI has a huge demand in the United States, while Brent is more suitable for the Northwestern European market.

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