What is the difference between wti and brent

There are a variety of platforms where the oils are traded depending upon your country of residence. One of the main way s to trade crude oil is through a futures contract, however there are differences for WTI and Brent. WTI futures contracts are deliverable in Cushing , Oklahoma. Cushing is a transshipment point with intersecting pipelines and storage facilities that has easy access to refiners and suppliers.

WTI futures trading hours :. Brent futures trading hours :. In the past, WTI traded at a premium to Brent. It now usually trades at a discount to Brent. Today WTI is the benchmark for oil prices in the US, while the rest of the world - and nearly two-thirds of all oil contracts traded - are on Brent. This makes Brent the global Benchmark. The spread will change from time to time, as the supply and demand forces of each crude oil are elastic due to geopolitics, weather, and regulation.

The chart below shows the price difference between WTI and Brent. Created by Abdullah AlAmoudi. See live WTI and Brent prices on our real time charts. Though we have listed the top five differences between WTI and Brent, these oils typically trade within a similar spread distance from one another.

There are times, however, when supply or demand constraints will significantly move one of the crude oils more than the other — such as tensions in the Middle-East or a natural disaster in North America, both of which could shut down extraction or refining ability of Brent and WTI, respectively. The key take away for traders is to keep an eye on crude oil news and monitor the spread between the two crude oils.

A change in the spread may indicate a change to the supply or demand of one of the oils, which is important knowledge to be able to trade those changes accordingly. Not as sensitive to geopolitics. Difference in price and benchmark. Trades at a discount to Brent. At DailyFX we have many resources to help you improve your trading:. DailyFX provides forex news and technical analysis on the trends that influence the global currency markets. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors.

We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. Forex trading involves risk. Losses can exceed deposits. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. Sign up now to get the information you need! Receive the best-curated content by our editors for the week ahead. By pressing 'Subscribe' you consent to receive newsletters which may contain promotional content.

For more info on how we might use your data, see our privacy notice and access policy and privacy website. Check your email for further instructions. Live Webinar Live Webinar Events 0. Economic Calendar Economic Calendar Events 0. Duration: min. P: R:. Search Clear Search results. No entries matching your query were found. Free Trading Guides. Please try again. Subscribe to Our Newsletter. Abbey Capital undertakes no obligation to update such information as of a more recent date.

Pursuant to an exemption from the CFTC in connection with accounts of qualified eligible persons, this report is not required to be, and has not been, filed with the CFTC. The CFTC, the SEC, the Central Bank of Ireland or any other regulator have not passed upon the merits of participating in any trading programs or funds promoted by Abbey Capital, nor have they reviewed or passed on the adequacy or accuracy of this report.

Risk Factors: This brief statement cannot disclose all of the risks and other factors necessary to evaluate a participation in a fund managed by Abbey Capital. It does not take into account the investment objectives, financial position or particular needs of any particular investor. Trading in futures is not suitable for all investors given its speculative nature and the high level of risk involved. Prospective investors should take appropriate investment advice and inform themselves as to applicable legal requirements, exchange control regulations and taxes in the countries of their citizenship, residence or domicile.

Investors must make their own investment decision, having reviewed the private placement memorandum carefully and consider whether trading is appropriate for them in light of their experience, specific investment objectives and financial position, and using such independent advisors as they believe necessary.

Past performance is not a guide to future performance. Income from investments may fluctuate. The rest of the video covers the differences between Brent and WTI crude oil - two trading classifications of sweet light crude oil that serve as the two major benchmark prices for purchases of oil worldwide - and their role in the futures market.

About FocusEconomics. FocusEconomics is a leading provider of economic analysis and forecasts for over countries in Africa, Asia, the Americas, Europe and the Middle East, as well as price forecasts 30 key commodities. The company is supported by an extensive global network of analysts. Since its launch 15 years ago, FocusEconomics has established a solid reputation as a reliable source for timely and accurate business intelligence among Clients from a variety of industries, including the world's major financial institutions, multinational companies and government agencies.

If you'd like to know more about FocusEconomics and what makes the Consensus Forecast so valuable, visit our About Us page. Why are we asking for your personal details? All of the information you give us will remain private. We will never pass on your personal details to any third party or send you spam.