Advice

Why is there a spread between WTI and Brent?

Why is there a spread between WTI and Brent?

The main fundamental drivers of the spread are: US crude oil production levels. Crude oil supply and demand balance in the US – i.e. crude oil inventory position in Cushing, PADD 2(mid-west) and PADD 3 (Gulf region)

What is WTI vs Brent?

As mentioned earlier in the article, Brent crude is the benchmark used for the wider light oil market – ie Europe, Africa and the Middle East, while WTI is the benchmark for the US light oil market. Other countries often use both Brent and WTI as benchmarks to value their crude oil.

What is crude oil spread?

A crack spread measures the difference between the purchase price of crude oil and the selling price of finished products, such as gasoline and distillate fuel, that a refinery produces from the crude oil.

What does WTI stand for?

West Texas Intermediate
West Texas Intermediate (WTI) is a light, sweet crude oil that serves as one of the main global oil benchmarks. It is sourced primarily from inland Texas and is one of the highest quality oils in the world, which is easy to refine.

What means Brent oil?

Brent is a blend of crude oil recovered from the North Sea in the early 1960s., whose price is used as a benchmark for the commodity’s prices. It is a light, sweet blend that can be refined easily into petrol and associated products.

What is difference between crude and Brent?

Brent is oil that is drilled out of the North Sea adjoining the UK and Norway while WTI Crude is extracted in the US. Predominantly, US oil is concentrated in Texas, North Dakota and New Mexico. The US uses West Texas Intermediate (WTI) as the benchmark.

What is WTI spread?

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.

What is Brent crack spread?

Description. The ICE Heating Oil/Brent Crack Spread allows you to trade the spread between the ICE Heating Oil Futures and ICE Brent Futures.

Related Posts

What does Swiss Water decaf mean?

What does Swiss Water decaf mean? The Swiss Water Process is a patented decaffeination method that uses only water to remove 99.9% of a coffee’s caffeine content. Heat…

How can I decorate my bedroom to look modern?

How can I decorate my bedroom to look modern? Choose antique-style furniture, like the matching accent tables shown in this bedroom. Go with braided textures and fabrics, white…

Do wild dogs eat warthogs?

Do wild dogs eat warthogs? They hunt for a wide variety of prey, including gazelles and other antelopes, warthogs, wildebeest calves, rats, and birds. Can a wild dog…

What is a vertical shadow angle?

What is a vertical shadow angle? Similarly, the vertical shadow angle (V.S.A.) is the angle, on a vertical section drawing of the wall, between a line perpendicular to…

What are some real life examples of trapezoids?

What are some real life examples of trapezoids? Examples of Trapezoid Shaped Objects Glass. The width of the glass reduces while moving downwards. Lamp. The shade cap of…

Can you park on Ecclesall Road Sheffield?

Can you park on Ecclesall Road Sheffield? On Ecclesall Road Some of the meters are up to 2 hours some are up to 4 hours, so please check…