West Texas Intermediate

West Texas Intermediate ( WTI also ) is a light, sweetish crude oil from the United States. Due to its low sulfur content, inter alia, it is particularly suitable for the oil refining and the production of gasoline. The price per barrel ( 159 liters ) WTI oil usually corresponds to the light of the North Sea Brent Crude, but may differ slightly.

Late April 2011, prices for WTI reached the highest level since September 2008, when the price collapse due to the economic crisis. WTI closed on April 29, with $ 113.93. Since the onset of the winter 2010/2011, the price of North Sea Brent Crude sometimes significantly higher as the price of WTI oil, which is very unusual ( see chart). The price difference widened to June 2011, up to $ 22, and in November 2012 it stood at $ 23.

With fundamentals can not explain this, because both types of about the same quality. Brent also has the advantage that it is very close geographically the (European) market. The main reason for the high price difference should be worried about the economic recovery in the U.S., especially after disappointing U.S. unemployment figures for May 2011. According to ZDF heute-journal on 12 November 2012, the WTI price due to new production technologies and rapidly increasing flow rates had fallen that the United States thereby becoming the exporter of oil importer, currently they are after delivery in 3rd place, you expect that they will soon move up to # 1 ahead of Saudi Arabia. However, pipelines would be missing for exports, therefore WTI is currently cheaper than Brent.

Like other oil prices, the price of WTI / Brent a significant clue for the development of fuel prices and has a great impact on the world economy. The importance of both species is dwindling, partly because of the sharp drop in the flow rate and political reasons, mainly because of statements made by some OPEC members to want to depend on the future because of the strong price fluctuations less of the price of WTI / Brent. The consequences of an oil shortage would be that the price of oil, for the parts that are affected, would increase dramatically.

  • Petroleum
  • Reference Type of oil
Barrel (unit) Great Recession
817828
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