Difference between Brent and WTI
Origin:
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Brent crude oil originates from oil fields in the North Sea between the Shetland Islands and Norway.
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West Texas Intermediate (WTI) is sourced from US oil fields, primarily in Texas, Louisiana, and North Dakota.
Light and Sweet:
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Both oils are relatively light, but Brent has a slightly higher API gravity, making WTI the lighter of the two.
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American Petroleum Institute (API) gravity is an indicator of the density of crude oil or refined products.
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WTI with a lower sulphur content (0.24%) than Brent (0.37%), is considered “sweeter”.
Benchmark Prices:
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Brent crude price is the international benchmark price used by the OPEC while WTI crude price is a benchmark for US oil prices.
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Since India imports primarily from OPEC countries, Brent is the benchmark for oil prices in India.
Cost of Shipping:
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Cost of shipping for Brent crude is typically lower, since it is produced near the sea and it can be put on ships immediately.
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Shipping of WTI is priced higher since it is produced in landlocked areas like Cushing, Oklahoma where the storage facilities are limited.