Oil brand WTI crude. The name of this type of oil originated from the abbreviation West Texas Intermediate.
A long period in the 20th century, WTI oil was the only marker variety, but later two more appeared. As the name implies, WTI oil is produced in the southwest United States in the state of Texas.
This is a light grade oil with a density of 40 degrees API and a sulfur content of 0.4-0.5%. WTI oil is ideal for the production of gasoline, and therefore it is always in high demand.
This sort of oil is a marker, primarily for the United States. The main consumers of WTI oil are the United States and China themselves. WTI oil is also known by another name — Light Sweet or Texas Light Sweet.
Everyone has heard what oil is, but not everyone knows how important it is for modern production. What is WTI? Raw oil. It is so called, based on its condition — it is a raw material, the same as other minerals.
Naturally, combustible substances such as fuel oil, gasoline, and diesel fuel are obtained from oil. But when recycled, it is able to give us other materials, including polyethylene, dyes, a huge amount of toxic chemicals, wax, synthetic rubber and much more. All these products are used in many industries, from construction to the manufacture of household goods.
It is now easier to name items made from non-oil than vice versa. What does it say about its great influence on the economic development of states and the lives of individual citizens?
WTI & BRENT
These two varieties affect the economic development of all oil-exporting countries. Not only do suppliers get less profit, so the currency of these countries also depreciates.
This may explain the fall of the ruble in 2015. In order to answer the question of why BRENT oil is more expensive than WTI, you need to figure out what makes up this price on the exchange. Oil is a commodity, and the price of any commodity is determined by two components — supply and demand.
The higher the demand, the more expensive the product, and vice versa. With regards to BRENT oil, it must also be said that it influences the pricing of most grades of this mineral in the world. WTI is also cheaper than BRENT because it is more expensive to transport.
Currently, there is a situation when world oil prices began to rise. This became possible due to a reduction in the extraction of raw materials due to an oversupply of this product in world markets. Some analysts argue that the price will not go down already since it has “bounced off the bottom”, others state that this is an adjustment, and the cost may drop to $ 20 a barrel. We can only observe the change in quotations and make our forecasts based on the analysis.
Find out the current price of WTI oil now!