Beginning in 2003, an influx of traders outside the oil industry began to participate in oil futures and other commodity futures markets. These market participants, which include hedge funds, pension funds, insurance companies and retail investors, have been driven by the growing acceptance of oil futures and related derivatives as financial assets. Demand from these investors and general financial innovations have created low-cost access to financial instruments related to oil futures such as options, index funds and exchange-traded funds.  As part of the investor interest wave, WTI crude oil futures (as well as Brent crude oil prices) will be included in both the Bloomberg Commodity Index and the S&P GSCI Commodity Index, which are benchmarks widely used in the financial markets of traders and institutional investors. The weighting of these commodity indices gives LME nickel prices a significant impact on the returns of a variety of mutual funds and portfolios.   West Texas Intermediate (WTI) crude oil is a specific type of crude oil and, along with Brent and Dubai Crude, one of the three most important oil price benchmarks. WTI is known as a mild light oil because it contains 0.24% sulfur, which makes it “soft” and has a low density, making it “light”. It is the underlying commodity of the New York Mercantile Exchange (NYMEX) oil futures contract and is considered a high-quality oil that can be easily refined. Since you just unlocked this person, you will have to wait 48 hours before renewing the lock.
. Unlike brent crude, WTI crude is not associated with a specific crude oil produced from certain oil fields. Rather, WTI crude oil can be described as “light sweet oil traded and delivered to Cushing, Oklahoma” (with WTI Midland and WTI Houston crude similarly defined for Midland, Texas, and Houston, Texas, respectively). Historically, it could be said that local trade between oil production and refineries in Midland, Texas and Cushing, Oklahoma, defined WTI crude, but as local production declined, pipelines to these areas began to supply other types of crude produced and blended elsewhere, which were also accepted as WTI crude.  The WTI Crude Oil Futures contract formalized this relationship by stating that the deliverable asset of the contract could be a mixture of crude oil as long as they are of acceptable ease and sweetness.  The lightness of crude oil is characterized by the gravity of oil, and the sweetness of crude oil is characterized by sulfur content. The measurements of the lightness and softness of the WTI change depending on the particular light and soft oil exchanged at Cushing at the time of measurement, and even the particular measurement method. In addition, Brent crude oil market participants compensate for the decline in North Sea production by including additional oil fields and different quality crude oil production in the definition of Brent crude oil, which affects the difference in quality between Brent and WTI crude oils. Forties and Oseberg crude was added in 2002, Ekofisk crude was added in 2007, and Troll crude was added to the Brent crude price basket in 2018. .