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.

What does the Brent WTI spread 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.

Why does WTI trade lower than Brent?

Another reason is that WTI supplies are produced in landlocked areas, and nowadays need to be transported to the coast, where most refineries are located. Because of growth in U.S. oil production, there’s a glut of oil supply in the U.S. midwest. So WTI now trades at a price “discount” to Brent oil.

Are WTI and Brent correlated?

Specifically, the Pearson correlation coefficient between spot returns of Brent and WTI is 0.60047, which indicates that Brent spot returns are slightly positive correlated to WTI spot returns.

Why is Brent more expensive than WTI?

Why is Brent crude more expensive than WTI? Simply put, the preference for Brent crude today stems from the fact that it may be a better indicator of global oil prices. Brent essentially draws its oil from more than a dozen oil fields located in the North Sea.

Which country has the best quality of oil?

Saudi Arabia
When it comes to the top oil producing countries, Saudi Arabia is known for offering the best quality of crude oil.

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).