WTI CRUDE

[WinterBorn]

How much will the name change cost? So far I see a lot of man-hours in it.

 

[Into the Night]

Mapping and naming oceans of the world is an international undertaking.

Nope. A single person can name an ocean.

The fact that the Trump administration calls it the Gulf of America doesn't change what is on the maps we have and the international maps.

Yes it does. It changes our maps.

 

[Into the Night]

How much will the name change cost? So far I see a lot of man-hours in it.

It's already done. You seem to have a tense problem.

 

[Walt]

How does WTI differ from Brent? What I've read is that the USA and most of Europe uses Brent grade oil. Forgive my ignorance on this.

They are benchmarks. The grade is arbitrary, but the locations are important.

There are about 200 different grades, and 2,000 different locations that oil is bought and sold(we are not even touching the 180 different currencies), so oil might seem a lot less fungible than is often claimed. That being said, the prices of different grades move in tandem, so if we have benchmarks in different parts of the world, we can make the oil market fungible. For a contract in the future for a given grade and location, it is quoted as a static numbers of dollars off of a benchmark. So sour oil delivered to Florida in 3 months might be $5 cheaper than whatever the WTI is in 3 months. Both buyer and seller will know that price will adjust to whatever the market says.

Differences in prices of grades barely change over the short to medium term, but difference in geographic prices can radically change over the short term. If there is an oil shortage in Europe, then in Brent will go up immediately, but, in the short term, WTI might not. Over time, oil will flow to where it is needed, so Brent and WTI will average out(in theory). That takes time.

They are both sweet oils

Absolutely no one cares what grade they are. If another benchmark grade was picked, it would work just as well.

It was the Gulf of Cortés until the mid-19th century

Actually, it was most commonly called the Gulf of Mexico by the mid-17th century. That is over a hundred years before the USA, or Mexico existed.

 

[WinterBorn]

Nope. A single person can name an ocean.

Yes it does. It changes our maps.

Yes, a single person can rename (or name) anything. However, the point of language is communication. If I refer to the Gulf of Mexico as the Gulf of Chris, I am welcome to do so. But no one else will know what I am talking about.

It is the Gulf of Mexico.

 

[WinterBorn]

It's already done. You seem to have a tense problem.

No problem at all.

And the changes have no effect on international mapping. Nor is the name change recognized outside the US.

 

[FastLane]

They are benchmarks. The grade is arbitrary, but the locations are important.

There are about 200 different grades, and 2,000 different locations that oil is bought and sold(we are not even touching the 180 different currencies), so oil might seem a lot less fungible than is often claimed. That being said, the prices of different grades move in tandem, so if we have benchmarks in different parts of the world, we can make the oil market fungible. For a contract in the future for a given grade and location, it is quoted as a static numbers of dollars off of a benchmark. So sour oil delivered to Florida in 3 months might be $5 cheaper than whatever the WTI is in 3 months. Both buyer and seller will know that price will adjust to whatever the market says.

Differences in prices of grades barely change over the short to medium term, but difference in geographic prices can radically change over the short term. If there is an oil shortage in Europe, then in Brent will go up immediately, but, in the short term, WTI might not. Over time, oil will flow to where it is needed, so Brent and WTI will average out(in theory). That takes time.


Absolutely no one cares what grade they are. If another benchmark grade was picked, it would work just as well.


Actually, it was most commonly called the Gulf of Mexico by the mid-17th century. That is over a hundred years before the USA, or Mexico existed.

They are bench marks BECAUSE OF THE GRADE you moron.

 

[Uncensored2008]

Yes, a single person can rename (or name) anything. However, the point of language is communication. If I refer to the Gulf of Mexico as the Gulf of Chris, I am welcome to do so. But no one else will know what I am talking about.

It is the Gulf of Mexico.

So the entire gulf resides in Mexico then?

 

[Into the Night]

Yes, a single person can rename (or name) anything. However, the point of language is communication. If I refer to the Gulf of Mexico as the Gulf of Chris, I am welcome to do so. But no one else will know what I am talking about.

It is the Gulf of Mexico.

Then don't call it the Gulf of Chris. It is the Gulf of America. That is what is on the maps. There is no Gulf of Mexico.

 

[Into the Night]

No problem at all.

And the changes have no effect on international mapping. Nor is the name change recognized outside the US.

All charts and maps reflect the name Gulf of America. Yes, these are international charts and maps.

 

[Walt]

They are bench marks BECAUSE OF THE GRADE you moron.

If another grade was the benchmark, we would just use that as the benchmark. If a sour grade is $3 below WTI, and you make the sour grade the benchmark, then WTI is $3 above the benchmark.

Is crude oil shipped in barrels? Of course not, but the benchmark became a barrel, which is still used today.