West Texas intermediate(WTI)

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News:The United States oil markets created history when the prices of West Texas Intermediate(WTI) fell to minus $40.32 a barrel in interlay trade in New York.

Facts:

  • West Texas Intermediate(WTI) is a specific grade of crude oil and one of the main three benchmarks in oil pricing along with Brent and Dubai Crude.
  • It is sourced primarily from Texas and is one of the highest quality oils in the world which is easy to refine.
  • This grade is described as light crude oil because of its relatively low density and sweet because of its low sulfur content. 
  • It is the underlying commodity of New York Mercantile Exchange’s oil futures contracts.

Additional Facts:

  • Negative Oil Pricing: It means the commodity producers are willing to pay purchasers to take oil off their hands amid fears that most storage facilities will run out of space.