A lot of acronyms are tossed around, like CPI, GDP or WTI, but it might be difficult to really understand their import or meaning. For the November 2016 Annual Texas Bankers Association Strategic Opportunities Conference – WTI might have been especially important. What is WTI and why is it important to Texas Bankers?
What is WTI?
WTI stands for West Texas Intermediate and is used as a benchmark for oil pricing. You can think of it as similar to a foot, pound or rug sample. It gives people a basis point with which to compare various oil qualities and prices. Why is WTI used?
West Texas Intermediate oil is high quality – it is light and sweet with a very low density. Its low sulfur content makes it easier to refine. Although, it is named after Texas, the crude oil actually is distributed from Cushing, Oklahoma.
There are many different types of oil around the world. When an investor wants a quick snap shot of the world markets, he can use WTI as his reference point. This WTI is used on New York Mercantile Exchange (NYME) oil future’s contracts.
Business of America is Business
Texas bankers want the WTI price to be high, in general. This is good for business, which is good for the State of Texas. When NexBank CEO John Holt spoke on the aforementioned conference’s banking panel named, “Reinventing Community Banking: Perspectives on Competing by Innovation,” he might have assumed that everyone in the room understood the meaning of the WTI acronym.
President Calvin Coolidge said that the “Business of America is Business.” When the local Texas energy firms are doing well, they can hire more workers. This creates more jobs and stimulates the service sector. And, these energy workers can bank at Dallas based NexBank.