West Texas Intermediate (WTI) is the most widely used oil benchmark globally.
WTI is traded under the stock symbol CL, which is listed on the New York Mercantile Exchange (NYMEX).
The WTI stock symbol is a crucial aspect of oil trading, allowing investors to buy and sell oil futures contracts.
WTI is a light crude oil with a low sulfur content, making it a popular choice for refineries.
WTI's stock symbol is CL, which is used to trade oil futures contracts on the NYMEX.
Basic Info
The West Texas Intermediate (WTI) Crude Oil Spot Price is currently at $70.38, down from $74.31 one year ago. This represents a decline of -5.29% from the same period last year.
The WTI Crude Oil Spot Price is a benchmark used to price oil in the Americas, and it's one of the most widely followed oil prices in the world. It's used to determine the price of oil produced in the region.
One notable event in the history of WTI Crude Oil Spot Price was in 2008, when prices reached as high as $145.31/barrel due to production cuts. This was followed by a sharp decline in 2009, as demand for oil plummeted during the financial crisis.
Here are some key statistics to keep in mind:
The WTI Crude Oil Spot Price is a critical indicator of the global oil market, and it's closely watched by investors and energy analysts.
WTI Crude Oil Futures Market News
Friday's WTI crude oil futures market saw a significant drop, with April WTI crude oil closing down -2.08 (-2.87%). The stronger dollar weighed heavily on energy prices, contributing to the decline.
Crude oil prices also took a hit from the US economic news, which was mostly weaker than expected and bearish regarding energy demand. The University of Michigan US Feb consumer sentiment index was revised lower by -3.1 to a 15-month low of 64.7.
Friday's losses in crude accelerated after prices fell below the 100-day moving average, triggering technical selling. This technical selling further contributed to the decline in WTI crude oil futures market.
Risk Management and Production
The HOU contract serves as a benchmark for Midland-origin and Midland-quality crude production and exports. This contract guarantees the physical delivery of on-spec and ratably delivered Midland WTI crude oil.
Deliveries of Midland WTI crude oil through the HOU contract averaged 4.4 million barrels each month in the second half of 2023. This is a significant amount of oil that can be utilized in U.S. domestic refineries or exported to European and Asian refiners.
Guaranteed deliveries of on-spec Midland WTI crude via HOU contribute to timely loading of export vessels, averting demurrage fees. This is a crucial aspect of risk management in the oil industry.
The ICE, as a regulated exchange and clearinghouse, provides anonymous trading and clearing with stringent procedures in place. This ensures a robust, fair, and transparent marketplace with clear protocols for physical delivery.
Every HOU delivery accrues interest on delivery margins at the ICE deposit rate. This is a benefit for market participants who use the HOU contract to manage their physical supply risk.
Midland WTI Impact
Midland WTI crude oil has been delivering on-spec and ratably to refineries in the US, Europe, and Asia, averaging 4.4 million barrels per month in the second half of 2023.
The HOU contract, which serves as a benchmark for Midland-origin and Midland-quality crude production and exports, has become a crucial pricing center for hedging and risk management.
Guaranteed deliveries of Midland WTI crude via the HOU contract contribute to timely loading of export vessels, averting demurrage fees and facilitating smooth operations.
Oil prices continue to be undercut by the thaw in US-Russian relations and possible peace talks on the Russia-Ukraine war, which could eventually lead to reduced sanctions on Russia and the full resumption of Russian oil exports.
The HOU contract provides a robust, fair, and transparent marketplace with clear protocols for physical delivery, ensuring that crude volumes are delivered on-spec and at the agreed-upon volumes and delivery timeframe.
Friday's stronger dollar weighed on energy prices, causing crude oil and gasoline prices to tumble, with gasoline posting a 3-week low.
Losses in crude accelerated Friday after prices fell below the 100-day moving average, triggering technical selling.
Frequently Asked Questions
What is the ticker symbol for West Texas Intermediate?
The ticker symbol for West Texas Intermediate is CL. This symbol is used for the most actively traded crude oil futures contract.
Why is West Texas Intermediate cheaper than Brent?
West Texas Intermediate (WTI) is cheaper than Brent due to its transportation costs from landlocked areas to refineries, resulting in a price discount. This discount is driven by the surplus of oil supply in the U.S. midwest, fueled by the country's growing oil production.
What does intermediate mean in WTI?
In the context of WTI, "intermediate" refers to the type of crude oil, which is a mid-weight oil blend. This means it's not as heavy as some other types of crude oil, but not as light as others either.
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