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Here is a small part of the transcript of a recent video on INO TV. The CME Group’s Managing Director of Energy & Metals
Products & Services, Joseph Raia talks about crude oil, natural gas and the world every markets. See more from Raia and more CME analysts by signing up at INO TV.
“Crude Oil & Energy Update” – Interview with the CME Group’s Joseph Ria
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“When you hear the news reporters talk about the price of crude oil in the marketplace, they’re generally talking about WTI, which is West Texas Intermediate crude oil. It’s a very light, sweet crude oil and the highest grade that’s out there. Crude oil is based on and priced on the amount of sulfur that’s in the oil. It makes it easier or harder to refine base on the amount of sulfur. WTI being the lightest and sweetest, is the highest priced crude oil in the marketplace. It is a benchmark delivered in Cushing, Oklahoma. In benchmarks for crude oil and global pricing of crude oil, WTI probably prices about 50% of the global pricing of crude oil. Brent being basically the other pricing benchmark. There’s two out there, Brent being a little of a mixture of three different grades of crude oil; BF&O, Brent 40 and Ossenberg. They’re all produced in the North Sea. They have a little bit of a variance in their qualities; some of the crudes are a little more sour, have a little more sulfur in there and are a little less desirable for refiners in they’re not able to really determine what type of crude they’re getting so they can model their refining slate to determine what kind of product they’re getting out of their refinery. …Go to INO TV FREE and access your password to watch Joseph Raia and other expert analysts courtesy of the CME Group.
