West Texas Intermediate - WTI

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DEFINITION of 'West Texas Intermediate - WTI'

Light, sweet crude oil commonly referred to as "oil" in the Western world. WTI is the underlying commodity of the New York Merchantile Exchange's oil futures contracts.

BREAKING DOWN 'West Texas Intermediate - WTI'

WTI is considered a "sweet" crude because it is about 0.24% sulfur, a lower concentration than North Sea Brent crude. WTI is high quality oil that is easily refined.

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RELATED FAQS
  1. Do all oil companies received the quoted price of West Texas Intermediate for their ...

    The quoted, or spot, price of West Texas Intermediate, or WTI, crude oil is just one of several benchmark oil prices. The ... Read Full Answer >>
  2. How much inventory space is available in the United States to store oil?

    There is enough working storage capacity for oil inventory in the United States to accommodate approximately 520 million ... Read Full Answer >>
  3. What is a heavy oil differential and how does it affect oil producers?

    Heavy oil differential refers to the difference in weight, or gravity, of oil, and secondly to the resulting price differentials. ... Read Full Answer >>
  4. What is the difference between Brent Crude and West Texas Intermediate?

    The major difference between Brent Crude and West Texas Intermediate is that Brent Crude originates from oil fields in the ... Read Full Answer >>
  5. How do futures contracts roll over?

    Traders roll over futures contracts to switch from the front month contract that is close to expiration to another contract ... Read Full Answer >>
  6. Why do companies enter into futures contracts?

    Different types of companies may enter into futures contracts for different purposes. The most common reason is to hedge ... Read Full Answer >>

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