Difference between Brent and WTI Origin: Brent crude oil ori | Deepak UPSC Notes

Difference between Brent and WTI

Origin:

Brent crude oil originates from oil fields in the North Sea between the Shetland Islands and Norway.

West Texas Intermediate (WTI) is sourced from US oil fields, primarily in Texas, Louisiana, and North Dakota.

Light and Sweet:

Both oils are relatively light, but Brent has a slightly higher API gravity, making WTI the lighter of the two.

American Petroleum Institute (API) gravity is an indicator of the density of crude oil or refined products

WTI with a lower sulphur content(0.24%) than Brent (0.37%), is considered "sweeter".

Benchmark Prices:

Brent crude price is the international benchmark price used by OPEC while WTI crude price is a benchmark for US oil prices.

Since India imports primarily from OPEC countries, Brent is the benchmark for oil prices in India.

Cost of Shipping:

Cost of shipping for Brent crude is typically lower, since it is produced near the sea and it can be put on ships immediately.

Shipping of WTI is priced higher since it is produced in landlocked areas like Cushing, Oklahoma where the storage facilities are limited.