WTI crude oil is American crude oil, which is traded on the New York Mercantile Exchange, namely NYMEXWTI. Although it is also an important part of the world crude oil pricing system, it has gradually withdrawn from the historical stage because it only prices American crude oil. Of course, the above pricing part refers to spot transactions. In futures trading, NYMEXWTI is still the largest variety of crude oil futures trading, which has a great guiding role and influence on other crude oil futures prices (such as ICEBRENT and DMEOMAN).
WTI: Intermediate base crude oil produced in West Texas, also known as Texas light crude oil, is the benchmark oil of American crude oil futures, that is, the subject matter. The international oil price basically refers to American crude oil futures, but less to London North Sea Brent crude oil. If there is any more oil, it will be Singapore.
The pricing of the international crude oil market is based on the standard oil in the world's major oil-producing areas. For example, on the New York Futures Exchange, crude oil futures are based on "WTI" produced in West Texas, and all crude oils produced or sold in the United States are priced based on light and low sulfur WTI.
Due to the strength of American super crude oil buyers and the influence of New York Futures Exchange itself, crude oil futures trading based on WTI has become the leader in global commodity futures trading volume. Generally speaking, crude oil futures contracts have good liquidity and high price transparency, and are one of the three benchmark prices in the world crude oil market. When the public and the media usually talk about how many dollars the oil price has exceeded, it mainly refers to this price.
However, more than two-thirds of the world's crude oil trading volume is not based on WTI, but on Brent crude oil in the North Sea, which is also light and low in sulfur. On June 23rd, 1988, the London International Petroleum Exchange (IPE) launched Brent crude oil futures contracts, including northwest Europe, the North Sea, the Mediterranean, Africa, Yemen and other countries and regions, all based on this. Because the futures contract meets the needs of the oil industry, it is considered as a "highly flexible tool to avoid risks and transactions" and also ranks among the three major international crude oil prices.
London has thus become one of the three major international crude oil futures trading centers. Brent crude oil futures and spot market constitute Brent crude oil pricing system, covering up to 80% of the global crude oil trading volume. Even today when the price of crude oil in new york is becoming more and more important, about 65% of the global crude oil trading volume is based on Brent crude oil in the North Sea.