West the United States. The most used and widely

West Texas Intermediate (WTI) crude, also known
as Texas Light Sweet or Light Sweet Crude, is a crude oil located primarily in
the Permian Basin oil field. WTI crude oil is one of the three main oil
benchmarks, along with North Sea Brent crude and Dubai crude. Though, WTI and
Brent crudes are the two most popular. WTI is considered a light sweet crude
because it contains approximately 0.24% sulfur with an average API gravity of
39.6. It is in fact the highest quality crude accessible and is easily refined.
However, WTI is not the most used oil because of its primarily domestic market in
the United States. The most used and widely traded crude oil is Brent crude. While
WTI is produced exclusively in America, Brent crude is a combination of crude
oil from fifteen different oil fields in the North Sea and is mostly refined in
Northwest Europe. The quality of Brent crude is only slightly lower than that
of WTI, having an API gravity of approximately 38.06. Nevertheless, the prices
of WTI and Brent crudes are often contrasted, even though they are the two most
used oil benchmarks. The difference in price between WTI and Brent crude is
called the Brent-WTI spread. This price difference is
related not to the quality of the two crudes, but rather the supply and demand
markets in which they operate. The price of each crude reflects its respective
market fundamentals. WTI crude is not only produced exclusively in the US, it is
also sold mainly to the US. Brent crude, on the other hand, constitutes more
than half of the world’s internationally traded crude oil supply. The difference
between the two individual markets is of course political, and is partially due
to the export ban on U.S. crude oil in 1975, which was reversed in 2015.
However, even though the ban has been lifted for a little over two years now,
if WTI was to begin exporting overseas into markets controlled mainly by Brent
crude, it could potentially make WTI unable to compete with Brent crude in
terms of price setting. Thus, the two crudes continue to maintain their
respective markets just as before, with Brent crude still slightly above WTI in
price difference. 

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