West Texas Intermediate - WTI


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.

  1. Probable Reserves

    After an oil exploration firm conducts a seismic survey of a ...
  2. Hedge

    Making an investment to reduce the risk of adverse price movements ...
  3. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on ...
  4. Futures Exchange

    Traditionally, a term referring to a central marketplace where ...
  5. Futures Contract

    A contractual agreement, generally made on the trading floor ...
  6. New York Mercantile Exchange - ...

    The world's largest physical commodity futures exchange. Trading ...
Related Articles
  1. Mutual Funds & ETFs

    Top 4 Inverse Commodities ETFs

    Learn about inverse commodity exchange traded funds that investors may want to consider to take a short position in certain commodities.
  2. Mutual Funds & ETFs

    ETF Analysis: ProShares Ultra Bloomberg Crude Oil

    Find out more about the ProShares Ultra Bloomberg Crude Oil ETF, the characteristics of UCO and the suitability and recommendations of UCO for investors.
  3. Mutual Funds & ETFs

    ETF Analysis: United States Oil Fund

    Find out more about the United States Oil Fund, the characteristics of USO, and the suitability and recommendations of the ETF for investors.
  4. Mutual Funds & ETFs

    3 Fixed Income ETFs in the Oil Sector

    Find out more about exchange-traded funds (ETFs) that track the oil sector, such as the United States Oil Fund and the iPath S&P GSCI Crude Oil TR ETN.
  5. Options & Futures

    Options On Futures: A World Of Potential Profit

    There's one simple hurdle in the transition from stock to futures options: learning about product specifications.
  6. Insurance

    Futures Fundamentals

    For those who are new to futures but want a solid understanding of them, this tutorial explains what futures contracts are, how they work and why investors use them.
  7. Economics

    The Biggest Oil Towns in North Dakota

    Learn how the oil boom in North Dakota has transformed two small towns from sleepy agricultural outposts to booming centers of industry almost overnight.
  8. Investing News

    Oil Prices Expected to Surge in 2017

    Oil has made headlines for its plummeting prices this year. When will prices rise again?
  9. Economics

    The US States That Produce the Most Oil

    Learn what eight states produce over 90% of U.S. oil, and how fracking has helped the United States become the world's largest oil-producing nation.
  10. Investing Basics

    What Does Plain Vanilla Mean?

    Plain vanilla is a term used in investing to describe the most basic types of financial instruments.
  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. Can mutual funds invest in options and futures?

    Mutual funds invest in not only stocks and fixed-income securities but also options and futures. There exists a separate ... Read Full Answer >>
  6. 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 >>

You May Also Like

Hot Definitions
  1. Real Estate Investment Trust - REIT

    A REIT is a type of security that invests in real estate through property or mortgages and often trades on major exchanges ...
  2. Section 1231 Property

    A tax term relating to depreciable business property that has been held for over a year. Section 1231 property includes buildings, ...
  3. Term Deposit

    A deposit held at a financial institution that has a fixed term, and guarantees return of principal.
  4. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  5. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  6. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!