What is the difference between WTI crude oil and Brent crude oil? Foreign exchange platform that can trade crude oil

The differences and relations among the three benchmark crude oils are as follows:

WTI crude oil, US market, futures pricing benchmark oil.

Brent crude oil, European market, spot market benchmark oil.

Dubai crude oil, the Asian market, reflects Asian demand for crude oil, of course, through price.

Introduction:

All crude oils produced or sold in the United States are priced with light and low sulfur WTI as the base oil. As a big crude oil consuming country and the global influence of the New York Futures Exchange, the crude oil futures trading with WTI as the benchmark oil has become the leading trading volume in the global commodity futures. The oil / USD traded in easy forex is WTI's crude oil. Generally speaking, the crude oil futures contract has good liquidity and high price transparency. It is one of the three benchmark prices in the world crude oil market. When the public and the media usually talk about how much the oil price breaks through, they mainly refer to this price.

However, in terms of trading volume, the spot trading volume of WTI is much lower than that of Brent crude oil, which is also light and low sulfurOn June 23, 1988, London International Petroleum Exchange (IPE) launched Brent crude oil futures contracts, including northwest Europe, the North Sea, the Mediterranean, Africa and Yemen and other countries and regions as the benchmark. Because this futures contract meets the needs of the oil industry, it is considered as a "highly flexible tool for risk aversion and trading", and also ranks among the international crude oil prices Three benchmarks. As a result, London has become one of the three major international crude oil futures trading centers.The Brent crude oil pricing system composed of Brent crude oil futures and spot market covers 80% of the world's crude oil trading volume at most. Even today, the price of crude oil in New York is becoming increasingly important, about 65% of the global crude oil trading volume is based on the North Sea Brent crude oil.

Brent crude oil and WTI are very close in quality and price. Crude oil price statistics in recent 10 years show that,Both rise and fall simultaneouslyThe former is usually about 5% lower than the latter. For example, the price of Brent crude oil was $13.43 in 1998 and $14.53 in New York; in 2004, the price of Brent crude oil rose to $38.29 and $41.60 respectively.

The Middle East is the world's largest oil production base, and who is their benchmark oil? For crude oil sold from the Middle East to Asia, the benchmark oil is neither WTI of New York nor Brent crude oil of London, but high sulfur "Dubai" crude oil of UAE. This is the famous OPEC oil price, which often reflects the demand for crude oil in Asia. Its spot trading is mainly in Singapore and Tokyo, while futures trading volume is very small. Dubai is about 30% cheaper than WTI and Brent. For example, when the price of Brent crude oil exceeded $40 in 2004, Dubai crude oil sold for only $27; however, since the global oil price soared for only two years, the price difference between high sulfur crude oil and low sulfur crude oil has narrowed to about $5.

 

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