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What's the difference between cloth oil and crude oil?
Brent crude oil

Brent is a kind of light and low sulfur crude oil, which is produced in Brent and Nignan oil fields in the North Sea. At present, more than 65% of the world's physical crude oil is priced by the global oil price benchmark Brent system.

West Texas intermediate oil

WTI crude oil is a kind of light intermediate base crude oil, which is produced in West Texas, USA. WTI is used as a benchmark when pricing crude oil produced or sold to the United States.

Simply put, the difference between Brent crude oil and WTI crude oil is mainly manifested in the following aspects:

1. Brent crude oil is more representative in the world, reflecting the global crude oil price, while WTI crude oil is mainly used in the United States, mainly reflecting the US crude oil price.

2. Both London Intercontinental Exchange and the New York Mercantile Exchange have Brent crude oil futures, while WTI crude oil futures are mainly traded on Chicago Stock Exchange.

3. The price of Brent crude oil mainly depends on the change of OPEC output and demand in Europe and Asia, while the price of WTI crude oil is mainly affected by inventory.

4. Brent crude oil includes four kinds of light and low sulfur crude oils produced in Beihai Oilfield: Brent, Forties, Ekofisk and Oseberg, while WTI crude oil is mainly Middle East light crude oil.

5. Different pricing methods

WTI crude oil is the futures pricing benchmark crude oil based on the American market, and the price of WTI crude oil mainly depends on Cushing crude oil. When the inventory price is high, the price of WTI will fall. When stocks are low, WTI prices rise, while Brent crude oil is the spot market benchmark oil based on the European market. The influence of Brent crude oil price mainly depends on the change of output and demand of the Organization of Petroleum Exporting Countries. Brent crude oil in Europe and Asia is very different from WTI crude oil, and the price difference is about 5%.

6. Influencing factors

The factors affecting crude oil in the two places are basically the same, but:

1) Domestic factors in the United States have a great influence on wti crude oil, such as the shale oil revolution in the United States, which has a great influence on American oil prices.

2) Factors outside the United States have a great influence on Brent crude oil, such as the turmoil in the Middle East, which has a great support for the distribution price.