Oil futures can be daunting products to understand and trade. Pete dives in to explain the different tradable contracts and what they represent.
Pete explains that there are multiple types of crude oil, with "sweet" crude, that which has a low sulfur content is more favorable. This is because it is easier to make gasoline and diesel fuel with low-sulfur oil.
There are dozens of oil benchmarks around the globe, however the price of most of them is tied to one of two primary types.
West Texas Intermediate (WTI) crude oil is lighter and sweeter than Brent Blend crude oil. WTI's delivery point is Cushing, Oklahoma, while Brent Blend is a Northern European oil, typically refined from the North Sea.
Pete takes a quick look at what types of crude come from various areas of the globe. He finishes the segment looking at current pricing and relative pricing of WTI and Brent, lastly looking at recent historical volatility.