What is the difference between brent and wti oil

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The continued increase in US crude oil output is a further factor that has impacted the spread between the two contracts. The main drivers of crude oil this year have been: OPEC supply cuts, which were extended in late , provided support for crude early in the year along with ongoing signs of improving global demand.

Geopolitical developments, such the US withdrawing from the Iran nuclear deal, have also provided a tailwind to crude oil. The Council of Economic Advisers. Accessed Nov. Energy Trading. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data. We and our partners process data to: Actively scan device characteristics for identification.

I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Oil Guide to Investing in Oil Markets. Commodities Oil. Table of Contents Expand. Brent Crude. West Texas Intermediate. Key Differences. Brent Crude vs. Key Takeaways Brent Crude and West Texas Intermediate dominate the oil market, and both dictate pricing in their respective markets. OPEC, a group of 13 of the most powerful oil exporting countries, use Brent as their pricing benchmark.

They are considered an extremely powerful group, as oil prices dictate the budgets and policies of many countries. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority. IG provides an execution-only service. The information in this site does not contain and should not be construed as containing investment advice or an investment recommendation, or an offer of or solicitation for transaction in any financial instrument.

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What is Brent crude oil? What is WTI oil? Extraction location. Brent crude WTI Sulphur content 0. Trading exchange. Find out how to trade Brent crude and WTI.

Pricing Though there are some correlations in composition and usage, all crude oils are not priced equally. Oil benchmarking and pricing Oil benchmarks are important because it describes where the commodity comes from, which is an important factor in determining its use.

Benchmarks for the heavy sour crude oil market are Dubai crude and Omani crude. Futures When you trade oil futures, you agree to trade the oil benchmark in this case, Brent crude or WTI at a specific price at a fixed date in the future.

Discover futures Options With options, you have the right, but not the obligation, to buy or sell an underlying asset when its price moves beyond a certain limit within a set time period. Discover derivatives Shares You can invest directly in oil company shares, such as BP or Royal Dutch Shell , and profit if the share price goes up. Explore the markets with our free course Discover the range of markets and learn how they work - with IG Academy's online course.

Try IG Academy. Related articles in. Why oil market volatility may intensify on Monday and Tuesday. OPEC meeting event risk for crude oil. You might be interested in…. How much does trading cost?