Light Sweet Crude (WTI) vs Brent Crude ?

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oem7110
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Light Sweet Crude (WTI) vs Brent Crude ?

Post by oem7110 » Sat Aug 11, 2012 8:27 pm

Does anyone have any suggestions on what difference and importance between Light Sweet Crude (WTI) and Brent Crude about? what is the different amount in term of supply on market between them?

The closing price for Light on 10 Aug, 2012 is 93.4

The closing price for Brent on 10 Aug, 2012 is 113.54

Which product do most traders monitor during trading periods?

Any help will be greatly appreciated :>

rhc
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Post by rhc » Sun Aug 12, 2012 1:09 am

Google can sometimes be very good for these types of questions.
http://www.google.com/search?btnG=1&pws ... +Crude+oil

(Yields 36,300 results !!)

oem7110
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Post by oem7110 » Sun Aug 12, 2012 4:58 am

rhc wrote:Google can sometimes be very good for these types of questions.
http://www.google.com/search?btnG=1&pws ... +Crude+oil

(Yields 36,300 results !!)
I read some articles, but still don't know which product most traders monitor during trading periods.

Do you have any suggestions on which one?
Thanks you very much for any suggestions
Last edited by oem7110 on Sun Aug 12, 2012 8:58 am, edited 1 time in total.

rhc
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Post by rhc » Sun Aug 12, 2012 7:56 am

From a volume traded point of view, It would appear that more oil traders "monitor" Light Sweet Crude and fewer oil traders "monitor" Brent Crude
(see pic below)
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oem7110
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Post by oem7110 » Sun Aug 12, 2012 8:58 am

rhc wrote:From a volume traded point of view, It would appear that more oil traders "monitor" Light Sweet Crude and fewer oil traders "monitor" Brent Crude
(see pic below)
Thanks you very much for your suggestions

Aaron01
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Post by Aaron01 » Mon Aug 13, 2012 9:53 am

Traded on different exchanges; oil from and for different locations; also, one doesn't have position limits :lol:

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Post by Imperium » Tue Aug 14, 2012 6:45 am

Aaron01 wrote:Traded on different exchanges; oil from and for different locations; also, one doesn't have position limits :lol:
IIRC, if you do both on ICE you shouldn't have position limits on either.

But, briefly:

Brent: North Sea blend (bfoe). Global Benchmark. Better for hedging against crude derivatives such as Kerosene. Traded on ICE.

WTI: Illegal to export from the US. Delivered to Cushing, OK. Capacity issues getting oil out of Cushing. US benchmark. Traded on Nymex and ICE.

Both are high quality oils.

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