Why is wti the benchmark

Overview Competition Finance. Economic and Financial Consulting and Expert Testimony. Search X. Battle of the Benchmarks: Brent Crude Oil and West Texas Intermediate This article examines the evolution and relationship between these two benchmarks and what factors have impacted their prominence as a benchmark.

Authors Greg Leonard Nicole M. Moran Laurent Samuel The views expressed in this article are solely those of the authors, who are responsible for the content, and do not necessarily represent the views of Cornerstone Research.

Filed Under. Click the link below to read the full article. Share Print. Home Publications Articles. The Firm. Contact Us. Facebook Twitter LinkedIn Email. Your Practice. Popular Courses. Commodities Oil. Oil Guide to Investing in Oil Markets. It is sourced primarily from inland Texas and is one of the highest quality oils in the world, which is easy to refine. WTI is often compared to Brent crude, which is an oil benchmark for two-thirds of the world's oil contracts based on oil extracted in the North Sea.

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Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Related Terms Benchmark Crude Oil Benchmark crude oil is petroleum that serves as a pricing reference, establishing standards for comparison for varieties of crude oil.

Brent Blend Definition Brent blend is a type of sweet crude oil that is used as a benchmark for the prices of other crude oils. What Does Sweet Crude Mean? Sweet crude is a type of oil with very low amounts of sulfur. It is considered a valuable and efficient source of petroleum products. Crude Oil Definition Crude oil is a naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials.

North Sea Brent Crude North Sea Brent Crude is a light-sweet blend of crude oil whose price serves as a benchmark to the majority of worldwide oil markets. What Does Sour Crude Mean? Sour crude is a type of crude oil known for its relatively high sulfur content.

It is viewed as a less desirable form of crude oil. Partner Links. Related Articles. Energy Trading How to Invest in Oil. Oil Brent Crude vs. West Texas Intermediate: The Differences. Investopedia is part of the Dotdash publishing family.

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