WTI or West Texas Intermediate or Texas Light Sweet is a brand of crude oil which price is often considered as an indicator of world fossil prices; one of the so-called benchmark of oil. This oil is one of the most popular oil sorts that is widely used for the production of kerosene and gasoline. JustForex offers traders a unique opportunity to start trading WTI right now!
WTI crude oil is produced in West Texas (USA). WTI crude oil became widespread and important in the 1920s when demand for cars and gasoline increased sharply.
It’s interesting: before the emergence and wide spreading of automobiles, gasoline was considered to be an unnecessary product. Kerosene was distilled from oil, and gasoline was burned or poured into rivers.
Texas crude oil was tied to the US economy only at the beginning of World War II in 1939-1940. WTI became necessary for the production of kerosene, which served as fuel for military aircrafts. In 1981, Texas Light Sweet became the benchmark for oil, and since 1983 WTI has been traded on the NYMEX.
WTI crude oil is considered to be light in chemical composition. The sulfur content is approximately 0.24% and does not exceed 0.5% of the total mass, which makes WTI beneficial for the manufacture of gasoline. WTI has a sweetish flavor. Previously, the sulfur content in oil was determined by tasting, since there was no other possibility. If the taste was sweet, then there is little sulfur in the product, sour – a lot. That is why WTI is also called Light Sweet.
WTI is similar in composition to the Brent oil brand, which is recovered in the North and Norwegian Seas. However, West Texas Intermediate is lighter and more aromatic. Brent is also a benchmark. It is traded on the London Stock Exchange. Futures for both of these brands are considered to be the most popular financial instruments in the world.
WTI quotes are characterized by increased volatility, which is of particular interest to traders. Oil prices tend to move up and down with significant fluctuations.
Since oil prices are highly dependent on events taking place in the world and in the places of oil reserves, we recommend paying special attention to the news feed, as well as following the economic calendar.
With JustForex, you can trade WTI 5 days a week, from Monday to Friday. On weekends, the stock market is closed and you cannot open new orders on it. We also recommend you to follow our news, where we always notify about world holidays and changes in the trading schedule. Stay updated with JustForex!