West Texas Intermediate (WTI) is a type of crude oil used as a benchmark in oil pricing and trading. WTI is extracted from oil wells in the Permian Basin region of West Texas and is considered to be a light, sweet crude oil due to its low density and sulfur content. It is one of the most widely traded and recognized crude oil benchmarks in the world.WTI prices are closely watched by traders and investors because they provide insight into the overall health of the global economy. A higher price for WTI indicates strong demand for oil, which usually corresponds to economic growth. Conversely, a lower price indicates weak demand and can be an early indicator of an impending recession.The current price of WTI crude oil is $60 per barrel, which is up from its recent lows but still below its highs from earlier this year. The volatility in prices has been driven by concerns about trade tensions between the United States and China as well as worries about oversupply in the market. Despite these concerns, analysts believe that global demand will continue to grow in 2019, which should support higher prices for WTI crude oil.WTI is used as a benchmark for the price of oil because it serves as a representation of the global oil market. Its price reflects the supply and demand dynamics of the world oil market, and it is used as a reference point for pricing other crude oils, petroleum products, and refined products such as gasoline and diesel fuel.WTI is traded on several major commodity exchanges, including the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE). The NYMEX is the primary exchange for WTI futures contracts, which are used by market participants to hedge against price risks and speculate on the future price of oil. The futures contracts are settled daily based on the spot price of WTI, which is determined by the market price of physical deliveries of WTI crude oil at the Cushing, Oklahoma storage and delivery point.The WTI benchmark is also used to price physical barrels of crude oil. Physical barrels of WTI are sold at the Cushing delivery point and are used as a benchmark for determining the price of oil for delivery to refineries in the United States and other countries. The WTI price is also used as a reference for determining the prices of other crude oils, such as Brent crude oil, which is used as a benchmark for pricing crude oil in Europe, Africa, and the Middle East.WTI is considered to be an important benchmark for the global oil market because it provides a clear and transparent representation of the supply and demand dynamics of the market. Its price is widely quoted in the financial and energy industries, and it is used by governments, central banks, and investors to monitor and make decisions about the oil market.In conclusion, West Texas Intermediate (WTI) is a type of crude oil that is widely recognized and used as a benchmark for the price of oil. It is extracted from the Permian Basin region of West Texas and is considered to be a light, sweet crude oil. WTI is traded on several major commodity exchanges and is used to price physical barrels of crude oil, as well as futures contracts. Its price is widely quoted in the financial and energy industries and is used as a reference point for pricing other crude oils and petroleum products.
