Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after.
Dow Jones futures gain amid easing US-China tensions, Michigan Consumer Sentiment awaited
WTI benefits from recent U.S. executive actions supporting oil and gas, enhancing its regulatory environment Best ev stocks and future free cash flow prospects. 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. Aussie and Pound are on divergent paths as respective central banks meet next week.
Oil Rises as EIA Reports Across the Board Inventory Draw
Global events, supply and demand factors, and market sentiment can cause prices to converge or diverge between the two benchmarks. 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. W&T Offshore, Inc. engages in the production, exploration, development, and acquisition of oil and natural gas properties. The company was founded by Tracy W. Krohn in 1983 and is headquartered in Houston, TX. W&T Offshore, Inc. shows resilience with strong liquidity and efficient drilling from its Cox acquisition, despite market volatility and lower oil prices.
The Specifics of Oil Futures
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. W&T Offshore, Inc., an independent oil and natural gas producer, engages in the acquisition, exploration, and development of oil and natural gas properties in the Gulf of America. The company sells crude oil, condensate, natural gas, and natural gas liquids.
Reuters cited commodities trader Mercuria, noting that the surplus is building gradually and could reach 2 million barrels per day next year. OPEC+ recently approved a modest production increase for December but plans to pause additional hikes in early 2026, signaling caution amid weakening demand. WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively.
Brent futures, on the other hand, can be settled financially. 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. The relationship between the futures and spot prices is influenced by market sentiment and the cost of carrying oil inventories. Additionally, factors specific to each benchmark, such as infrastructure constraints or political stability in the respective regions, can affect their prices.
What factors influence the prices of WTI and Brent oil futures?
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis. Copyright © 2025 FactSet Research Systems Inc.Copyright © 2025, American Bankers Association. SEC fillings and other documents provided by Quartr.© 2025 TradingView, Inc. Select to analyze similar companies using key performance metrics; select up to 4 stocks.
Brent Stalls at $65 as Markets Shrug Off OPEC+ Supply Signals
- If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price.
- Traders can buy or sell these contracts, aiming to profit from price fluctuations.
- Political instability, wars, and sanctions can disrupt supply and impact prices.
- OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
- Each contract represents a specific quantity (typically 1,000 barrels) of oil to be delivered at a specified future date.
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. 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.
- Spot prices represent the current market value of oil for immediate delivery.
- US Energy Information Administration (EIA) showed that Crude Oil Stocks Change surged by 5.202 million barrels last week, swinging from the previous decline of 6.858 million barrels.
- W&T Offshore, Inc. was founded in 1983 and is headquartered in Houston, Texas.
- WTI futures contracts are typically settled through physical delivery.
It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media. 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.
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. 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.
Inside the Hidden Oil Glut
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. Aramco announced that Saudi Arabia set its December official selling price at $1 per barrel above the Oman/Dubai average, the first reduction after holding prices steady in November.
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. 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.
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. The current price of West Texas Intermediate (WTI) crude oil today is $59.89 per barrel. 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.
W&T Offshore, Inc. was founded in 1983 and is headquartered in Houston, Texas. 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. W&T Offshore, Inc. remains resilient amid mixed Q results, with natural gas as a core growth driver and a robust Balance Sheet supporting operational stability. While Brent and WTI have distinct characteristics, their prices are interconnected.
US Energy Information Administration (EIA) showed that Crude Oil Stocks Change surged by 5.202 million barrels last week, swinging from the previous decline of 6.858 million barrels. The crude stock exceeded market expectations of a 1.8 million-barrel increase, marking the biggest increase since July. W&T is a small cap offshore oil and gas producers that recently broke below its 2020 pandemic lows. Back then, oil was $-37 as opposed to $63 now and the debt concerns were way more significant. Please review the copyright information in the series notes before sharing. Gold reclaims the $4,000 psychological mark heading into the European session on Friday, though it remains below the overnight swing high amid mixed cues.
Morgan states that year-to-date through November 4, global Oil demand has risen 850,000 barrels per day, below the growth of 900,000 bpd projected earlier by the bank. The note also added «High-frequency indicators suggest that US Oil consumption remains subdued,» pointing to weak travel activity and lower container shipments, reported by Reuters. W&T Offshore, Inc. still faces market headwinds, but natural gas remains a strong component of its operations. Natural gas growth prospects are rosy amid data center expansion and increased electricit…
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. The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil.
