Difference between Difference between Light Sweet Crude and Light Sweet Crude and

Brent Crude TradingBrent Crude Trading

Are you into Oil trading? If yes, then you Are you into Oil trading? If yes, then you must have heard names such as Brent or must have heard names such as Brent or

WTI. We are going to have a short view of the WTI. We are going to have a short view of the difference between Light Sweet Crude and difference between Light Sweet Crude and

Brent Crude Trading for more understanding Brent Crude Trading for more understanding of the market you’re earning.of the market you’re earning.

Brent or WTI, both are the most Brent or WTI, both are the most important varieties of oil. important varieties of oil.

According to oil density, it is According to oil density, it is divided into various categories. divided into various categories. Each type of oil does not differ Each type of oil does not differ only in the gravity, but also in only in the gravity, but also in

the molecular characteristics, in the molecular characteristics, in the composition of elements and the composition of elements and

the content of sulfur.the content of sulfur.

The prices of the Oil varieties are The prices of the Oil varieties are also different. But here, there is also different. But here, there is an interesting thing to note that an interesting thing to note that

unlike other commodities, a unlike other commodities, a higher quality oil variety may not higher quality oil variety may not be costing more than the lower be costing more than the lower

quality Oil and it’s quite possible quality Oil and it’s quite possible that lower quality oil may be that lower quality oil may be

costing more. Below I discuss the costing more. Below I discuss the two main varieties in relation to two main varieties in relation to

oil trading.oil trading.

First oil variety is called WTI First oil variety is called WTI (West Texas Intermediate). This (West Texas Intermediate). This is the most important variety. is the most important variety. This oil is also known as Texas This oil is also known as Texas

Light Sweet (Sweet Texas Light Sweet (Sweet Texas Crude). This oil is extracted in Crude). This oil is extracted in

the U.S. Its most important the U.S. Its most important center is Cushing in Oklahoma . center is Cushing in Oklahoma .

WTI is in the best varieties.WTI is in the best varieties.

WTI oil price is the most WTI oil price is the most important price. That is, if you important price. That is, if you read a story in which the oil read a story in which the oil

reaches $100 a barrel, it is the reaches $100 a barrel, it is the variety WTI. The WTI price is the variety WTI. The WTI price is the

global reference point global reference point (benchmark) of oil. However, (benchmark) of oil. However, many debates that despite of many debates that despite of

WTI quality, it does not WTI quality, it does not represent the type of oil which represent the type of oil which

should represent the world should represent the world price.price.

It should also be noted that it is It should also be noted that it is increasingly difficult to extract oil increasingly difficult to extract oil of this quality and gradually the of this quality and gradually the quality is also going down. It is quality is also going down. It is

listed on the NYMEX in New York.listed on the NYMEX in New York.

Second Oil variety is called Second Oil variety is called BRENT.  This is one of the most BRENT.  This is one of the most important types of oil. In fact it important types of oil. In fact it is a mixture of varieties: Brent is a mixture of varieties: Brent

Crude, Brent Sweet Light Crude, Crude, Brent Sweet Light Crude, Oseberg, Ekofisk, Forties .It is Oseberg, Ekofisk, Forties .It is

also known as Brent Blend.also known as Brent Blend.

The price of Brent is used to price The price of Brent is used to price two thirds of all international oil two thirds of all international oil business. This type of oil is also business. This type of oil is also

used as a point of reference, and used as a point of reference, and we can see it in the news and we can see it in the news and

newspapers. Brent crude newspapers. Brent crude produced in the North Sea, is a produced in the North Sea, is a

high quality oil (less than WTI).It high quality oil (less than WTI).It trades on the ICE.trades on the ICE.

Although, the WTI crude oil is of Although, the WTI crude oil is of better quality but it happens better quality but it happens

that that BRENT oilBRENT oil costs more than costs more than WTI. Around four to five years WTI. Around four to five years

ago, the difference between the ago, the difference between the price of Brent and WTI was price of Brent and WTI was

around 10 USD.around 10 USD.

In recent days, due to the lack of In recent days, due to the lack of capacity for refinement, WTI capacity for refinement, WTI

began to lose its attachment to began to lose its attachment to the world price and now despite the world price and now despite

having more quality, it is having more quality, it is cheaper than Brent. Another cheaper than Brent. Another

thing to note here is that the oil thing to note here is that the oil prices are directly related to the prices are directly related to the political situation of the world.political situation of the world.

Various political forces change Various political forces change the prices in their favour by the prices in their favour by increasing or decreasing the increasing or decreasing the

supply. So, if you are interested supply. So, if you are interested in in oil oil tradingtrading whether it is light whether it is light

sweet crude or brent crude sweet crude or brent crude trading then you must remain trading then you must remain

up-to-date in international news up-to-date in international news or at least news of major oil or at least news of major oil

producing countries.producing countries.