How to Invest in WTI
WTI Crude Oil is the benchmark for oil prices in the United States, the world\'s top consumer of oil. WTI crude is a sweet crude oil that is more sweet than its European counterpart Brent and a result, generally trades at a premium. Due to this lower sulfur content, WTI is often processed into gasoline on the American east coast and is then piped across the country for consumption.
Crude oil is used in a variety of products that are crucial to everyday modern life. However, \'crude\' oil is unprocessed and generally comes right out of the ground/ocean and has minimal uses until it is processed into a finished product such as gasoline.
Investors looking to invest directly in WTI crude have a limited number of options. While there are heavily traded futures contracts available for the product there are currently no pure play stocks or equity ETFs that invest in companies that exclusively produce WTI crude and do not then refine it themselves into finished products. With that being said, smaller U.S. oil firms that aren\'t integrated may offer direct exposure to the price of WTI crude although they are likely to be very volatile when compared to the overall energy industry. There are, however, a number of ETP products that offer exposure to the commodity\'s futures contracts either in a basket or pure-play form.
Ways To Invest In WTI
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