There is a difference between the oil extracted from the ground, understand how WTI and Brent crude are different.

If you wake up in the morning and read the news or watch news on TV, you would often hear words like crude oil or crude oil. Many times words like Brent Crude and WTI also come into discussion in different countries and for different reasons. Actually, it is oil that comes out of the ground, but due to its quality and availability, its name changes. These days, due to the ongoing tension in Western Asia, there is a lot of discussion about crude oil because the price of one barrel has crossed 100 dollars and there is a possibility of petroleum products becoming expensive all over the world.

On Monday morning, the price of a barrel of Brent crude oil increased to more than $115. This is the first time that oil has become so expensive since June 2022. It is still feared that if this war between Iran vs Israel and America does not end, then this price may reach 150 dollars i.e. almost double. Countries like Qatar have indicated that if such a situation persists, they may also stop oil exports.

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If this happens, the prices of companies based on petroleum products such as paint and other chemical products may also skyrocket. In this situation, there are chances of price increase and governments of many countries including India may have to face problems due to this. Well, let us first understand what is the difference between different crude oils.

Difference between WTI and Brent crude

The full form of WTI is West Texas Intermediate. It is mainly found in Texas, Oklahoma and North Dakota of America. This is light and sweet crude oil. Meaning its density is low and the amount of sulfur in it is less. Due to this, it costs less to refine it. When crude oil prices are assessed globally, WTI prices are seen as the benchmark. Especially wherever crude oil goes from American countries, WTI is the standard. If we consider it roughly then it is good quality crude oil. Despite the better quality, this oil is sold cheaper because its transportation is less expensive. This is why the increase in its prices means that the prices of many things are affected.

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Brent crude is crude oil found mainly in Norway, Denmark and the United Kingdom. This is also light and sweet. That is, the main difference between the two is in the place where they are found. Brent crude is also light but not as light as WTI. American Petroleum Institute (API) gravity is used as the standard and the lightness of oil is measured between 10 and 70. The lighter the oil, the higher its API.

If seen on this scale, the API gravity of WTI is 39.6 degrees and that of Brent is 38 degrees. That means there is no significant difference in this also. Sulfur in WTI is 0.24 percent and in Brent it is 0.40 percent. You must know here that the crude oil coming from Arab countries is slightly different from these two but it is considered to be similar to Brent crude.

What does India buy?

Dependent on imports for crude oil, India buys both Brent and WTI crude. Most of the quantity is of Brent. However, apart from Brent and Crude, there are many other types of oil in the world. For example- India has long purchased crude oil from Russia called Urals. Its price is around the same as Brent but it is slightly heavier. Brent crude is considered beneficial for India because it is cheaper for Indian oil companies to buy and transport it.