WTI crude oil & Brent crude oil - difference, stock prices
What is the difference between WTI crude oil and Brent crude oil ? Why there are two types of oil on stock market and why there are different index prices ?
There are different types of oil and different oil extraction methods, so there are also different crude oil benchmarks available. West Texas Intermediate and Brent represent one of the main benchmark prices for purchases of crude oil worldwide.
WTI - is also known as Texas light sweet. It is sourced from US oil fields.
Brent - is the leading global price benchmark for Atlantic basin crude oils. It is extracted from the North Sea.
Both WTI and Brent are considered as a sweet crude oils. WTI is better for production of gasoline, while Brent is good for production of diesel. West Texas Intermediate is a bit "sweeter" than Brent crude oil.
The production costs are different in case of Onshore crude oil production and Offshore crude oil production with oil rig.