Page 180 - PRIAA Glossary

WEST TEXAS INTERMEDIATE (WTI)
A grade of crude oil produced in the Permian Basin region
of the United States. It also represents a benchmark crude price for US-produced crudes and is the basis for the NYMEX oil futures contract. The NYMEX crude settlement point is Cushing, Oklahoma, which has become a large storage point for WTI crude as well as other commonly traded crudes that are priced relative to WTI crude.
WET GAS
Natural gas that contains additional proportions of hydrocarbons, such as ethane, propane or butane that can be separated as natural gas liquids (NGLs). The United States classifies wet gases as those that contain more than 0.1 gallon of condensables per 1,000 cubic feet of gas.
WHAT-IF
Calculations for testing a financial model using different assumptions and scenarios, enabling the forecaster to check the variance in end results using different values for inputs such as interest rates and exchange rates. Also referred to as “sensitivity analysis” or “stress testing”.
WITHHOLDABLE PAYMENT
A designation by FATCA that refers to dividends, royalties, rents, licensing fees, profits, interest, salaries, wage gains, annuities and gross proceeds where the source of payment is within the United States .
WORLDSCALE (WS)
A list of calculated rates for specific voyage itineraries for a standard vessel, using defined voyage cost assumptions such as vessel speed, fuel consumption and port costs. Actual market rates for voyage charters are usually quoted in terms of a percentage of Worldscale.
WRONG-WAY RISK
A phenomenon whereby the present value of a swap
(or portfolio of swaps) traded with a counterparty is adversely correlated with the decreasing creditworthiness of the counterparty.
178