“Hey Greg, What’s the Current Price on WTI, Brent Crude, and Natural Gas for May 14, 2024?”

West Texas Intermediate (WTI) crude oil is a high-quality, light, and sweet grade of crude oil. It serves as one of the main global oil benchmarks, along with Brent crude. WTI is primarily sourced from inland Texas and is easily refined. It is the underlying commodity for the New York Mercantile Exchange’s oil futures contract. WTI is compared to Brent crude, which is the benchmark for two-thirds of the world’s oil contracts based on oil extracted in the North Sea.

WTI is delivered and settled at the Cushing hub in Oklahoma, which is a major oil storage and transportation hub. It has significant storage capacity and serves as a crucial point for oil exchange and pricing. While WTI is considered a high-quality oil, its price can trade at a discount to Brent crude due to market dynamics, including increased production from the shale boom in the U.S. and transportation costs when competing in Brent crude’s market.

Brent crude, also known as Brent blend, is one of the three major oil benchmarks used in trading oil contracts, futures, and derivatives. The other two benchmarks are West Texas Intermediate (WTI) and Dubai/Oman. Oil benchmarks are important for traders to identify the specific type of oil being traded, as different oils have varying values based on their use in different industries and transportation considerations.

Brent crude is the most widely traded oil benchmark and is sourced primarily from oilfields in the North Sea, including Brent, Forties, Oseberg, and Ekofisk (collectively known as BFOE). It is a highly desirable oil type due to its sweet and light characteristics, making it easy to refine into diesel fuel and gasoline. Additionally, its production at sea allows for relatively straightforward transportation, further contributing to its popularity in trading.