If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
Live charts, historical data, futures contracts, and breaking news on WTI prices can be found below. Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price.
Develop a WTI Trading Strategy
Aussie and Pound are on divergent paths as respective central banks meet next week. West Texas Intermediate (WTI) Oil price advances on Thursday, early in the European session. WTI today is an important piece of information for traders for several reasons. To learn which method is the right one for you, follow the link see the article “How to Trade Oil”. The materials provided on this Web site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Market Authority
WTI and Brent oil futures are standardized contracts traded on futures exchanges. Each contract represents a specific quantity (typically 1,000 barrels) of oil to be delivered at a specified future date. Traders can buy or sell these contracts, aiming to profit from price fluctuations. The futures price reflects market expectations for the future value of oil.
Oil Price News Oil Prices Fall
Bets that the Fed might cut rates again in December further benefit the yellow metal. A modest USD uptick might cap further gains, warranting caution for bullish traders. Risk appetite has not fully enjoyed the treats of a Fed rate cut, strong earnings and trade peace. Fedspeak, the US Supreme Court and US data could challenge the Dollar’s current strength.
StanChart Finally Turns Bearish, Cuts Oil Price Forecast By $15/bbl
- The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude.
- Additionally, factors specific to each benchmark, such as infrastructure constraints or political stability in the respective regions, can affect their prices.
- Because the supply of crude oil is limited but demand is constantly increasing, the price of oil is also continuously rising.
- Keep yourself updated on relevant WTI market news and events that can influence prices.
- It requires a deep understanding of the oil market, risk management techniques, and the ability to monitor positions actively.
WTI (West Texas Intermediate) is a grade of crude oil used as a benchmark in oil pricing. It’s a light, sweet crude oil with low sulfur content (0.24%), making it ideal for gasoline refining. WTI is delivered at Cushing, Oklahoma, and is the underlying commodity for NYMEX oil futures contracts. If a trader holds a contract until expiration and does not offset or roll over the position, they must provide or take delivery of the actual crude oil.
Brent Crude is a particularly light crude oil which is carried from the North Sea to the Sullom Voe Terminal on Mainland, Shetland by an underwater pipeline. Trading can be done either by speculating on its market price, or exchanging the physical commodity. While Brent and WTI have distinct characteristics, their prices are interconnected. Global events, supply and demand factors, and market sentiment can cause prices to converge or diverge between the two benchmarks.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia. There are two main differences between WTI and Brent, the location from which they are sourced and the quality of the oil. These two factors lead to a price difference between the two termed the ‘spread’ which will change depending on different supply/demand dynamics and geopolitical influences. Gold catches fresh bids on the last day of the week amid reviving safe-haven demand.
The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa. Access real-time WTI (West Texas Intermediate) crude oil pricing data through our professional API. The primary oil benchmark for North American markets, updated every 5 minutes. WTI and Brent oil futures are primarily traded on major futures exchanges, such as the New York Mercantile Exchange (NYMEX) for WTI and the Intercontinental Exchange (ICE) for Brent. These exchanges offer electronic trading platforms where traders can execute transactions and manage their positions. The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil.
Brent makes such a good benchmark because it is easy to refine into products such as diesel, gasoline, petrol, and other end products, which are in a great and consistent demand. Keep yourself updated on relevant WTI market news and events that can influence prices. Also consider insights from financial analysts and market experts to refine your trading decisions.
- The relationship between the futures and spot prices is influenced by market sentiment and the cost of carrying oil inventories.
- As such, global growth can be a driver of increased demand and vice versa for weak global growth.
- WTI (West Texas Intermediate) is a grade of crude oil used as a benchmark in oil pricing.
- There are two main differences between WTI and Brent, the location from which they are sourced and the quality of the oil.
- Brent crude oil is one of the most popular oil benchmarks in the world, it’s recovered from the North Sea.
In December 2005 the global demand for crude oil was 83.3 million barrels per day according to the International Energy Agency (IEA) and this will continue to rise further. Oil futures are financial contracts that allow participants to buy or sell a specific quantity of oil at a predetermined price on a future date. These contracts serve as an agreement between the buyer and the seller to facilitate the delivery of oil or the cash settlement of the contract at the expiration date. Brent crude oil is one of the most popular oil benchmarks in the world, it’s recovered from the North Sea.
Yes, WTI and Brent oil futures are commonly used for hedging purposes by participants in the oil industry. Oil producers, refiners, and other market participants often utilize futures contracts to manage their exposure to price volatility. By taking positions in oil futures, they can offset potential losses from adverse price movements in the physical market, providing a form of insurance against price risks. Oil futures are traded on commodities exchanges, such as the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE).
Historical Prices for Oil (WTI)
The price of WTI is a key indicator of a commodity’s supply and demand. By knowing the current price, traders can assess potential future price movements and make informed decisions about Best artificial intelligence stocks buying, selling, or holding their positions. Besides its primary role as the most important energy source, crude oil is also an essential raw material for manufacturing plastics.
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