I was checking the oil prices on the stock market today. What is the difference between "light crude" and "Brent crude"? Which is the one that we should watch?

-- Linda Hitchings (lindasue1@earthlink.net), November 22, 1999

Answers

Linda,

Every crude is differs in chemistry, mostly sulfur content varies.

They do tend to move a pace of one another so if you want to follow one just track it - West Texas Intermediate is a staple US crude.

-- Bill P (porterwn@one.net), November 22, 1999.

Brent crude is referring to oil from the North Sea just north of the UK. This is traded in Europe commodity markets.

In the US the commodity markets (NY Mercantile Exchange) trades in West Texas Intermediate Crude Oil a.k.a. WTI. There are differences in crudes from not just around the world but even within the USA. Pennsylvania crude is much richer than the oils out west. Remember Pennzoil or Quaker State (motor oils). In Ohio, Indiana and Illinois you also have some fairly rich oil but not nearly so like in Pennsylvania. Texas is a little "lighter" and more useful for gasoline. In the Rocky's you'll even find oil from the shale but it is considered to be less desireable for gasoline production.

Usually, the NY Mercantile exchange provides leadership in oil pricing for the world.

-- Dick Moody (dickmoody@yahoo.com), November 22, 1999.

Hi Dick,

I'm sorry to butt in here, but how would you rate the "richness" of crude in Kansas?

-- Laura (Ladylogic46@aol.com), November 22, 1999.