How many types of crude oil are traded?
According to the Canadian Fuels Association, there are more than 150 different types of crude oil in the world.
What types of oil are traded?
The two most popular types are Brent Crude and West Texas Intermediate (WTI), which are traded on the Intercontinental Exchange (ICE) and New York Mercantile Exchange (NYMEX) respectively. They are used as benchmarks for global oil prices, as well as economic health.
What are most common type of crude oil?
The Four Main Types Of Crude Oil
- Very light oils – these include: Jet Fuel, Gasoline, Kerosene, Petroleum Ether, Petroleum Spirit, and Petroleum Naphtha.
- Light oils – These include Grade 1 and Grade 2 Fuel Oils, Diesel Fuel Oils as well as Most Domestic Fuel Oils.
What is Brent crude oil?
Brent is the leading global price benchmark for Atlantic basin crude oils. It is used to set the price of two-thirds of the world’s internationally traded crude oil supplies. It is one of the two main benchmark prices for purchases of oil worldwide, the other being West Texas Intermediate (WTI).
What are the different types of crude oil used for?
What is Brent oil vs WTI?
As mentioned earlier in the article, Brent crude is the benchmark used for the wider light oil market – ie Europe, Africa and the Middle East, while WTI is the benchmark for the US light oil market. Other countries often use both Brent and WTI as benchmarks to value their crude oil.
What is difference between Brent and crude oil?
Brent is oil that is drilled out of the North Sea adjoining the UK and Norway while WTI Crude is extracted in the US. Predominantly, US oil is concentrated in Texas, North Dakota and New Mexico. The US uses West Texas Intermediate (WTI) as the benchmark.
What is the difference between WTI and Brent crude oil?
How is crude oil traded?
Most of the trading that occurs in the oil markets is through futures contracts, over the counter contracts, contracts for differences as well as exchange-traded funds. The majority of the liquidity worldwide is via futures contracts. A futures contract is the obligation to purchase or sell crude oil at a specific location at a date in the future.
What are the types of crude oil?
Very light oil is mainly used in the following crude oil products: gasoline, jet fuel, petroleum spirit, kerosene, petroleum ether and petroleum naphtha. This type is moderately toxic and volatile.
What are the different types of crude oil futures contracts?
Apart from the standard full contract, the CME also offers the E-mini crude oil futures contract, which settles for 500 barrels or 2,100 gallons of crude oil. For the WTI contracts on the CME Group, monthly contracts are listed for the current year and the next 10 calendar years, with two additional contract months.
Which crude oil futures contract has the highest liquidity?
The West Texas Intermediate crude oil contract (WTI) has the highest liquidity of all the oil futures contracts. The WTI contract that is traded on the CME is physically delivered. There is also an electronic contract that is financially settled, but the liquidity pales in comparison to the physically delivered contract.