WTI Crude Oil Futures Contracts

Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing. Welcome to browse the page of WTI Crude Oil Price which shows the current WTI crude oil price and its fluctuation width, previous close price and open price, etc. WTI Crude Oil Price is a grade of crude oil that served as a benchmark in oil pricing, therefore, it is essential to take attention to the prices of WTI crude oil.

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Crude oil as a commodity, its futures are the world’s most actively traded commodity. Such as the Iraqi invasion of Kuwait in 1990, the average monthly price of oil rose from $17 per barrel in July to $36 per barrel in October. WTI futures contracts are typically settled through physical delivery. 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.

Besides its primary role as the most important energy source, crude oil is also an essential raw material for manufacturing plastics. Because the supply of crude oil is limited but demand is constantly increasing, the price of oil is also continuously rising. Because crude oil is needed to manufacture other primary materials, it is the world’s most important commodity. The US investment bank Goldman Sachs estimates the proportion of crude oil used for primary materials production to be 45 per cent. The highest ever historical WTI crude oil price was at $141.63 per barrel. Other significant recent historical highs include $77.74 per barrel in Jul, 2006 and $109.50 per barrel in Aug, 2013.

Brent crude oil opened the year of 2020 amidst an uptrend that began in November 2020 from $38.84 per barrel and continued the rally to $68.72 per barrel until early March 2021. For more info on how we might use your data, see our privacy notice and access policy and privacy webpage. If your aggregate position is larger than Tier 1, your margin requirement will not be reduced by non-guaranteed stops. An oil price shock has the potential to spark a recession or a 1970s-style stagflationary crisis, Roubini has warned.

The futures price reflects market expectations for the future value of oil. That’s down by 8.87% from the price of $73.65 per barrel one week ago. WTI crude oil trades from Sunday through to Friday, 5 PM to 4 PM CT. If you check live prices on Saturdays, you will always see the last recorded WTI crude price from the previous Friday.

The 10 best penny stocks to buy now final settlement price is determined by the average of daily spot prices over a specific period, and cash is exchanged based on the price difference between the futures contract and the spot price. The pricing of WTI and Brent oil futures is based on the underlying spot prices of the respective crude oils. Spot prices represent the current market value of oil for immediate delivery. Futures prices are determined by market participants’ expectations of future supply, demand fundamentals, conditions, storage costs, interest rates, and other relevant factors.

Brent vs. WTI Crude Oil Prices Compared

Additionally, factors specific to each benchmark, such as infrastructure constraints or political stability in the respective regions, can affect their prices. Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment. Oil futures are traded on commodities exchanges, such as the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE). These exchanges provide a platform for participants to buy or sell oil futures contracts.

What are Oil Futures?

1. The reference oil traded most frequently and of major significance for the USA is West Texas Intermediate (WTI), while the most important in Asia is Dubai Fateh.
2. WTI crude had a series of rallies and tumbles to reach a year-high price of $84.06 per barrel in late October 2021.
3. While Brent and WTI have distinct characteristics, their prices are interconnected.
4. WTI futures contracts are typically settled through physical delivery.

On an international level there are a number of different types of crude oil, each of which have different properties and prices. The types of crude oil come from regions as diverse as Alaska North Lope, Arab Light or Zueitina in Libya. For the purposes of trading on futures exchanges in London or New York, however, reference oils are used. These are standardised products used to determine the prices for all other types. The reference oil traded most frequently and of major significance for the USA is West Texas Intermediate (WTI), while the most important in Asia is Dubai Fateh. Other reference oil types include Leona, Tijuana, Alaska North Slope, Zueitina or Urals.

You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. WTI (West Texas Intermediate) and Brent are two major benchmarks for crude oil prices. WTI represents oil extracted in the United States, primarily from wells in Texas, while Brent represents oil extracted from the North Sea, primarily in the United Kingdom. WTI and Brent oil futures are financial contracts that allow participants to speculate on the future price of crude oil. Yes, WTI and Brent oil futures are commonly used for learn how to become a disciplined trader 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.

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. 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. Today’s Brent crude oil spot price is at $70.90 per barrel, down by 2.50% from the previous trading day. In comparison to one week ago ($77.04 per barrel), Brent oil is down 7.97%. You should familiarise yourself with these risks before trading on margin.

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These contracts serve as an agreement between the attention required! cloudflare buyer and the seller to facilitate the delivery of oil or the cash settlement of the contract at the expiration date. From time to time new oil resources come online — like Canadian oil sands or US crude oil from oil shale — these add to the global supply. New sources can exert a downward force on oil prices, even in times of heavy demand.

The abbreviation indicates one barrel of crude oil, but you may see Gbbl (one billion barrels), as well as Mbbl (one million barrels) or Kbbl for one thousand barrels. For example, you can see that Brent crude oil spot prices are quoted by the barrel (bbl), as are West Texas Intermediate (WTI) oil prices on global futures exchanges like NYMEX. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

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. WTI and Brent oil futures can be suitable for individual investors, but they come with inherent risks. Futures trading involves leverage, meaning that a small change in the futures price can result in significant gains or losses. It requires a deep understanding of the oil market, risk management techniques, and the ability to monitor positions actively. Individual investors should carefully assess their risk tolerance and consider seeking professional advice before engaging in oil futures trading. Technological developments and changes in resource distributions along the oil supply chain will also impact crude oil spot prices.

The increased focus on renewable energy is already accelerating such changes. We also explain what oil blends are (like Brent and WTI), and ways you can speculate on live crude oil spot prices without having to buy physical barrels. 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 current price of West Texas Intermediate (WTI) crude oil today is $67.87 per barrel. Live charts, historical data, futures contracts, and breaking news on WTI prices can be found below. Today’s WTI crude oil spot price of $67.12 per barrel is down 8.87% compared to one week ago at $73.65 per barrel. The commodity of crude oil is by far the world’s most important energy source and the price of oil therefore plays an important role in industrial and economic development. The most important type of crude oil used in Europe is Brent Crude, named after the North Sea oilfield where it is extracted.