Are you into Oil trading? If yes, then you must have heard names such as Brent or WTI. We are going to have a short view of the difference between Light Sweet Crude and Brent Crude Trading for more understanding of the market you’re earning.

1. Difference between Light Sweet Crude and Brent Crude Trading Are you into Oil trading? If yes, then you must have heard names such as Brent or WTI. We are going to have a short view of the difference between Light Sweet Crude and Brent Crude Trading for more understanding of the market you’re earning.

2. Brent or WTI, both are the most important varieties of oil. According to oil density, it is divided into various categories. Each type of oil does not differ only in the gravity, but also in the molecular characteristics, in the composition of elements and the content of sulfur.

3. The prices of the Oil varieties are also different. But here, there is an interesting thing to note that unlike other commodities, a higher quality oil variety may not be costing more than the lower quality Oil and it’s quite possible that lower quality oil may be costing more. Below I discuss the two main varieties in relation to oil trading.

4. First oil variety is called WTI (West Texas Intermediate). This is the most important variety. This oil is also known as Texas Light Sweet (Sweet Texas Crude). This oil is extracted in the U.S. Its most important center is Cushing in Oklahoma . WTI is in the best varieties.

5. WTI oil price is the most important price. That is, if you read a story in which the oil reaches $100 a barrel, it is the variety WTI. The WTI price is the global reference point (benchmark) of oil. However, many debates that despite of WTI quality, it does not represent the type of oil which should represent the world price.

6. It should also be noted that it is increasingly difficult to extract oil of this quality and gradually the quality is also going down. It is listed on the NYMEX in New York.

7. Second Oil variety is called BRENT. This is one of the most important types of oil. In fact it is a mixture of varieties: Brent Crude, Brent Sweet Light Crude, Oseberg, Ekofisk, Forties .It is also known as Brent Blend.

8. The price of Brent is used to price two thirds of all international oil business. This type of oil is also used as a point of reference, and we can see it in the news and newspapers. Brent crude produced in the North Sea, is a high quality oil (less than WTI).It trades on the ICE.

9. Although, the WTI crude oil is of better quality but it happens that BRENT oil costs more than WTI. Around four to five years ago, the difference between the price of Brent and WTI was around 10 USD.

10. In recent days, due to the lack of capacity for refinement, WTI began to lose its attachment to the world price and now despite having more quality, it is cheaper than Brent. Another thing to note here is that the oil prices are directly related to the political situation of the world.

11. Various political forces change the prices in their favour by increasing or decreasing the supply. So, if you are interested in oil trading whether it is light sweet crude or brent crude trading then you must remain up-to-date in international news or at least news of major oil producing countries.