WTI stands for West Texas Intermediate, which is a type of crude oil primarily produced in the United States. It is a widely used benchmark for oil pricing and trading in the global market.
WTI is a light, sweet crude oil with low sulfur content, making it easier and cheaper to refine into various petroleum products. It is traded in the commodities market and is one of the key indicators of oil prices worldwide.
As a benchmark, WTI establishes the reference price for crude oil that is produced and consumed in North America. It is traded on the New York Mercantile Exchange (NYMEX) and is seen as a reliable measure to determine the value of oil.
The WTI benchmark is important for market participants, including oil producers, refiners, speculators, and investors, as it provides a reference point for pricing and hedging strategies. It is also closely monitored by governments, financial institutions, and energy analysts as a crucial indicator of the health and dynamics of the oil market.
Due to its availability and prominence in the global market, changes in the WTI price are closely watched and can have significant impacts on the energy industry, consumer prices, and global economic trends.
