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What is the difference between brent and sweet light crude? January 8, 2009

Posted by mytruthaboutoil in Oil (general), Oil prices, Oil trading.
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Many people ask me why the medias always give two different prices for oil: Brent and Sweet light. Let me try to explain what the differences between the two are, and why prices vary from one to another.

Originally Brent crude refers to oil pumped from the North Sea, especially in the UK and in Norway.

What journalists call Sweet Crude or Light Sweet Crude is actually a crude oil called West Texas Intermediate (WTI), which is originally a US produced oil both light (because it contains little wax) and sweet (less than 0.5%).

So, on a global production scale Brent and Sweet Crude represent tiny volumes. People talk about these types of crude because they became the two major benchmarks for settling the oil prices on world markets.

For instance, two-third of the oil traded in the world is currently sold as Brent Crude. The benchmark oil is a combination of

Brent and WTI are actually not the only two benchmark oils available on the market. We can also find the OPEC basket or the Dubai Crude.

 

So as you have probably already seen, Brent is usually one to two dollar per barrel cheaper than Sweet Crude (WTI), but with respect to the crazy situation we are in these days, we can

crude oil from 15 different oil fields in the Brent and Ninian areas of the North Sea.t be sure of anything and it happens from time to time that Brent becomes shortly more expensive than WTI. Nothing rational into this…

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