What are WTI and Brent in crude oil?
What are WTI and Brent in crude oil?Brent is the subject matter of a crude oil futures contract listed on ice. It is Brent crude oil (a quality, or a standard) produced in the North Sea, just like WTI crude oil futures listed on NYMEX.
WTI, namely West Texas Intermediate (crudeoil), is a kind of light crude oil commonly used in North America. Due to the U.S. military and economic capabilities in the world, WTI crude oil has become the benchmark of global crude oil pricing.
In order to unify the domestic crude oil pricing system, the United States uses the WTI crude oil contract listed on the New York Mercantile Exchange as the pricing benchmark. Crude oil, together with us dollars and grain, are the three major means by which the United States influences and controls the global economy and financial markets.
The U.S. government controls the price of WTI crude oil futures contracts in a variety of ways, including the regular energy data of the energy information administration (EIA) of the U.S. Department of energy (DOE) every Wednesday, and the weekly position report of the CFTC (Commodity Futures Trading Commission).
The New York Mercantile Exchange (nymexwti) successfully launched its futures contract in 1983. As one of the benchmark prices of international crude oil, it has made an important contribution to the development of the global crude oil market.
The delivery place of the contract is located in Cushing, Oklahoma, Oklahoma. After the expiration of the contract, the spot delivery will be carried out through the pipeline and storage tank network system. WTI's main users are refineries in the Midwest and Gulf of Mexico.