What are the differences between WTI Crude Oil and Brent Crude Oil?

By opening an account with HotForex (HF Markets), you can start investing in WTI Crude Oil and Brent Crude Oil CFDs.

WTI Crude Oil and Brent Crude Oil CFDs are 2 of the most popular commodity CFDs traded online though, do you know the difference between these 2 Energy CFDs?

In this article, we will explain the characteristics of WTI Crude Oil and Brent Crude Oil for traders.

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WTI Crude Oil CFD

Crude oil is a fossil fuel composed of plants and animals that have been buried underground for many years and have died under extreme heat and pressure.

It is one of the most valuable natural resources in the world and is measured in US dollars.

Fluctuations in crude oil prices affect the global economy, and commodity prices depend on crude oil prices, which in turn affects our daily lives.

Crude oil traders choose the most widely used types of crude oil because they price each barrel.

This benchmark is considered a reference price for crude oil buyers and sellers.

US crude oil utilizes an industrial benchmark called West Texas Intermediate (WTI), which is a mixture of several US streams of light sweet crude oil that easily decomposes during the refinery process.

Supply and demand for crude oil in the global market, ease of refinement, quality and investment in crude oil futures are factors that determine US crude oil prices.

In any case, the oil market is quite complex and it is important for investors to keep track of current prices and understand the factors that influence oil prices.

Trade WTI Crude Oil CFD with HotForex

Brent Crude Oil CFD

Crude oil is one of the most valuable commodities in the world.

There are two main categories of crude oil: British crude oil, well-known Brent crude oil, and US crude oil West Texas Intermediate, WTI.

Brent Crude is an international global benchmark for crude oil.

According to ICE futures, two-thirds of the world’s crude oil is priced in relation to ICE Brent.

Brent crude oil is extracted primarily from the North Sea, mainly Brent, Forties, Osberg and Ecofisk territorial waters.

Brent crude oil is characterized as light oil due to its low concentration and softness due to its low sulfur content (about 0.37% sulfur).

However, this variety of crude oils is more costly than US Crude Oil (WTI) because it contains more sulfur and is more costly than essential oils.

The crude oil market is very liquid and fast-paced.

The biggest factors affecting Brent crude oil prices are supply and demand levels.

Other factors related to the widening gap between Brent and other index crudes range from dollar currency movements to regional demand variations, politics and market speculation.

Trade Brent Crude Oil CFD on HotForex