U.S. Department of Energy - Energy Efficiency and Renewable Energy

Vehicle Technologies Office

Fact #538: September 29, 2008
Crude Oil Price Differences

There are more than 150 different types of crude oil that are traded internationally. The characteristics, quality, and price of those types differ. Mostly, differences in the prices of the various crude oils are related to quality, but other factors also influence the price relationships among them. There are two main types of crude oil that are quoted often by the press and industry analysts — West Texas Intermediate (WTI) and Brent. Some prices that are quoted, however, are averages of different types of crude oil. Three of the standard price categories that are commonly used are the NYMEX Futures, OPEC Basket Price, and the Imported Refiner Acquisition Cost. Information on these categories and their price relationships are on the table below.

Crude Oil Prices Commonly Used
  Description Price
Relationship		 July 2008
Monthly
Average Price
Crude Oil Type
West Texas Intermediate (WTI) High quality, light (39.6 degrees API gravity) and sweet (0.24% sulfur content) Usually $5 to $6 per barrel over OPEC Basket $133.37 per barrel
Brent Combination of oil from 15 different fields in the Brent and Ninian systems in the North Sea. Not as light nor as sweet as WTI, but still good quality Usually $1 to $2 per barrel less than WTI $132.72 per barrel
Crude Oil Price Categories
NYMEX Futures Reported by the Press; Market-determined value of futures contracts to buy or sell WTI or other light, sweet crude oil. This price closely tracks WTI price. Usually tracks WTI closely $133.48 per barrel
OPEC Basket Price OPEC collects prices of seven crude oils to monitor world oil market conditions. Usually $5 to $6 per barrel less than WTI $131.22 per barrel
Imported Refiner Acquisition Cost Volume-weighted average price of all crude oils imported into the U.S. over a specified period. Two-month time lag until data are available, but very good estimate of World prices. Usually $6 to $8 per barrel less than WTI $126.94 per barrel

Source: Energy Information Administration and OPEC
Descriptions, WTI and Brent prices, NYMEX Futures price, OPEC Basket Price, Imported Refiner Acquisition Cost

 

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