Brent has an API gravity of 38 degrees and a sulfur content of 0.4%, making it slightly heavier and less sweet than WTI. Brent is typically used as a benchmark for international oil markets, such as markets in the Middle East, Europe and Africa. Brent futures traded around $82.57/bbl, an increase of 0.18% in the last 24 hours.
- Whiting refinery has led to more availability of heavy oil.
- However, WTI futures contract prices dropped to as low as negative $40/bbl on April 20, 2020, driven largely by a lack of U.S. storage options during the COVID-19 pandemic.
- Russia said on Jan 26 that the Tuapse refinery, which processed 180,000 bpd of crude in the first half of January, will be shut down through at least February.
- To buy and sell crude oil futures contracts, you must open a brokerage account that offers commodity futures trading.
- On Jan 25, a drone attack damaged Russia’s Rosneft PJSC’s major Tuapse refinery on Russia’s Black Sea coast.
- Signs of strength in the U.S. economy are supporting energy demand and crude prices after weekly jobless claims fell to a 5-week low and the Feb S&P manufacturing PMI rose to a 17-month high.
The information is accurate as of the publish date, but always check the provider’s website for the most current information. Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. The difference between the spot price of Brent crude and WTI crude is called the Brent/WTI spread. WTI crude is a blend of oils extracted from U.S. oilfields in Texas, North Dakota and Louisiana and is delivered to Cushing, Oklahoma.
Recent Contracts
West Texas Intermediate prices have drifted lower in 2024, but prices are up 28.53% over the past three years. WTI Midland (WTC-WTM) weakened 40 cents, while WTI at East Houston (WTC-MEH), eased 30 cents. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
Crude Prices Supported by U.S. Economic Strength
Today’s U.S. economic news was supportive of energy demand and crude prices. Weekly initial unemployment claims unexpectedly fell -12,000 to a 5-week low of 201,000, showing a stronger labor market than expectations of an increase to 216,000. Also, the Feb S&P manufacturing PMI rose +0.8 to a 17-month high of 51.5, stronger than expectations of no change at 50.7. In addition, Jan existing home sales rose +3.1% to a 5-month high of 4.00 million, stronger than expectations of 3.97 million.
On Nov 30, OPEC+ agreed to cut crude production by -1.0 million bpd through June 2024. However, a Bloomberg survey on Thursday showed the group cut production by only -490,000 bpd in January, less than the official -1.0 million bpd cut. Meanwhile, on Dec 21, Angola announced it was leaving OPEC amid a dispute over oil production quotas. Baker Hughes reported last Friday that active U.S. oil rigs in the week ended Feb 16 fell by -2 rigs to 497 rigs, just above the 2-year low of 494 rigs posted on Nov 10. The number of U.S. oil rigs has fallen over the past year from the 3-3/4 year high of 627 rigs posted in December 2022. Saudi Arabian oil is neither WTI, extracted in the U.S., nor Brent, extracted in the North Sea near Europe.
Light Crude Oil Futures
Blueprint does not include all companies, products or offers that may be available to you within the market. A list of selected affiliate partners is available here. U.S. WTI Midland crude differentials slipped on Wednesday after a trade in the Platts window. Motiva Enterprises (MOTIV.UL) plans to crude oil wti tradingview restart the large coker at its 626,000-bpd Port Arthur, Texas, refinery within the next two weeks, sources said. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards.
Saudi Arabia’s state-owned oil company, Saudi Aramco, uses the Dubai/Oman crude oil benchmark when pricing its oil for delivery to Asia. The Brent/WTI spread has historically ranged between $4/bbl and $8/bbl, but it can expand or contract based on factors related to U.S. and international supply and demand conditions. For example, the Brent/WTI spread hit nearly $14/bbl in April 2011 when protests sparked market fears of significant oil supply disruptions in the Middle East. Crude oil is one of the most important commodities in the world, serving as a key energy source and as a raw material used to produce plastics, chemicals and other products. Nearly all the crude oil imported or produced in the U.S. is refined into petroleum products, including gasoline, diesel fuel and heating oil.
WTI vs. Brent crude
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U.S. crude oil production in the week ended Feb 16 was unchanged w/w at a record high of 13.3 million bpd. A decline in Russian crude oil exports is supportive of crude oil prices. Tanker-tracking data from Vortexa, monitored by Bloomberg, shows Russian crude exports in the week to Feb 11 fell about -290,000 bpd from the prior week to 3.49 million bpd. Hezbollah and Israel have traded fire almost daily since the Israel-Hamas war erupted on Oct 7. Also, the U.S. and UK have engaged in airstrikes against Houthi rebels in Yemen in retaliation for Houthi attacks on commercial shipping in the Red Sea. Natural disasters and geopolitical conflicts worldwide can disrupt production and create oil supply shortages.
Brent crude is a sweet, light blend of oils extracted from the North Sea near Europe. Brent futures rose by 0.18% to $82.57/bbl, as of 9 a.m. BP is continuing the phased restart of its 435,000-barrel-per-day (bpd) Whiting, Indiana, refinery, a company spokesperson said on Thursday night. U.S. crude grades largely eased on Friday, the last day of the volatile “roll” period as traders adjusted crude slates, dealers said.
Today’s weekly EIA report was mixed for crude and its products. On the bullish side, EIA crude inventories rose +3.51 million bbl, below expectations of +3.75 million bbl. Also, EIA distillate stockpiles fell -4.0 million bbl, a bigger draw than expectations of -2.1 million bbl. On the bearish side, EIA gasoline supplies fell -293,000 bbl, a smaller draw than expectations of -2.6 million bbl. Also, crude stockpiles at Cushing, the delivery point of WTI futures, rose +741,000 bbl.
On Feb 3, a drone attack by Ukraine damaged Russia’s Lukoil PJSC facility in Volgograd, which processed 289,000 bpd of crude oil in January, or more than 5% of Russia’s total crude processing volume. On Jan 25, a drone attack damaged Russia’s Rosneft PJSC’s major Tuapse refinery on Russia’s Black Sea coast. Russia said on Jan 26 that the Tuapse refinery, which processed 180,000 bpd of crude in the first half of January, will be shut down through at least February. In recent weeks, several Russian oil processing and storage facilities have been targeted and damaged by Ukrainian drone attacks, increasing the risks of reducing Russian crude exports.
It reached its 52-week high of $96.62 on Sep. 27, 2023. WTI crude fell to its 52-week low of $64.00 per barrel on May 3, 2023. It reached its 52-week high of $95.52 on Sep. 27, 2023.
The three-day roll period is used by traders to square positions and manage exposure, resulting in more volatile trading. Prices to roll U.S. crude oil futures positions from March to April traded at a midpoint of 95 cents a barrel. Signs of strength in the U.S. economy are supporting energy demand and crude prices after weekly jobless claims fell to a 5-week low and the Feb S&P manufacturing PMI rose to a 17-month high. Also, today’s rally in the S&P 500 to a new record high shows confidence in the economic outlook that is supportive of energy demand and crude prices. The most popular WTI crude oil futures contracts are traded on the NYMEX. Each CL contract represents 1,000 barrels of oil, and the contracts trade Sunday to Friday from 6 p.m.
A decline in crude in floating storage is bullish for prices. Monday’s weekly data from Vortexa showed that the amount of crude oil held worldwide on tankers that have been stationary for at least a week fell -19% w/w to 73.18 million bbl as of Feb 16. One of the most popular ways investors speculate on crude oil and other commodity prices is by trading futures contracts.
Brent crude oil prices hit their all-time high of $147.50/bbl during the oil market boom in July 2008. However, WTI futures contract prices dropped to as low as negative $40/bbl on April 20, 2020, driven largely by a lack of U.S. storage options during the COVID-19 https://1investing.in/ pandemic. Brent futures contracts remained well above zero, bottoming at around $25/bbl that day. Crude prices also have support from Ukrainian drone attacks on Russian refineries and oil storage facilities that have curtailed Russian fuel exports.