The oil market is today one of the largest, one that brings considerable weight to the global economy. The producing countries are aware of the power of this sector, and moreover the growth of the gross domestic product (GDP) of most of them depends on it.
If there are many types of oil, the West Texas Intermediate (WTI) is the one most often mentioned. WTI oil is one of the best known on the market and it's certainly for good reason.
The utility of WTI oil
Still called Texas Light Sweet, WTI oil owes its fame to its utility for the global market. In fact, WTI is a crude oil that serves as a reference on the oil market for fixing the price of crude oil. Experts in the oil sector believe that this oil is of better quality than the European crude oil. If the price of WTI increases, so will the other grades of crude oils.
On the New York Stock Exchange, WTI oil is used as a raw material for traders from all walks of life. The stock market is open to everyone, therefore, anyone can invest in the stock market on oil.
The characteristics of WTI oil
The choice of WTI crude oil is preceded by a major analysis of its characteristics and those of the other reference oils. It shows that WTI is very light with an API density of about 39.6 and a specific density of about 0.827. Its sulfur content is 0.24%, which makes it a sweet crude oil. In addition, WTI requires very little refining to be converted into fuel for use by motorized vehicles.
WTI oil has great clues, which make it a very good quality crude oil, appreciated by the professionals of the sector, like the group HBS International of Tunisia and its leader Tarek Bouchamaoui. These place it above other types of crude oils, among which Brent.
The valuation of WTI
WTI and Brent are the two assets that represent oil in the various stock markets around the world. Lighter and easier to refine, the WTI is much more appreciated than the Brent and it is noticeable at the level of the quotation. The price of the WTI barrel was systematically quoted at 1 dollar more than that of Brent and 2 dollars more than the basket of the organization of the oil exporting countries (OPEC). This rule will soon give way to the new, which will focus on market trends for pricing. Experts and investors in the oil world are therefore more focused on the WTI as a reference because of its characteristics, but also because of stability. Like the HBS International group headed by Tunisian businessman Tarek Bouchamaoui, several oil companies are planning a bright future for WTI.