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 city index reviews include Leona, Tijuana, Alaska North Slope, Zueitina or Urals. The significance of a benchmark in the oil market is that benchmarks serve as a reference price for buyers and sellers of crude oil. Oil benchmarks are frequently quoted in the media as the price of oil.
- Hailing from the North Sea, Brent Crude Oil stands as a major trading classification of sweet light crude oil.
- Though Brent crude and WTI crude are the most popular benchmarks, their prices are often contrasted.
- W&T Offshore’s stock was trading at $3.26 at the start of the year.
- WTI’s high quality makes it desirable for refining into gasoline and thus, an asset to the energy markets.
- According to one analyst, the rating for WTI stock is “Strong Buy” and the 12-month stock price forecast is $7.9.
WTI’s high quality makes it desirable for refining into gasoline and thus, an asset to the energy markets. WTI is the main oil benchmark for North America as it is sourced from the United States, primarily from the Permian Basin. It then travels through pipelines where it is refined in the Midwest and the Gulf of Mexico. The main delivery point for physical exchange and price settlement for WTI is Cushing, Oklahoma. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.
Stockholders of record on Monday, March 18th will be given a dividend of $0.01 per share on Monday, March 25th. This represents a $0.04 annualized dividend and a dividend yield of 1.48%. The ex-dividend date of this dividend is Friday, March 15th. The company is scheduled to release its next quarterly earnings announcement on Tuesday, May 14th 2024. The most oversold stocks in the energy sector presents an opportunity to buy into undervalued companies.
W&T Offshore, Inc.
1 Wall Street analysts have issued “buy,” “hold,” and “sell” ratings for W&T Offshore in the last twelve months. The consensus among Wall Street analysts is that investors should “buy” WTI shares. Predominantly used in European markets, Brent is ideal for gasoline refining due to its low sulfur content and light density. 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. It is a discourse that extends beyond simple economics into the realm where geography, politics, and commerce intersect.
According to one analyst, the rating for WTI stock is “Strong Buy” and the 12-month stock price forecast is $7.9. Though one cannot invest directly in the physical oil, futures contracts canadian forex brokers and other financial instruments are available for investment purposes. As geopolitical events can create volatility in oil prices, discerning these potential risks is essential.
Why is Brent more expensive than WTI?
West Texas Intermediate (WTI) crude oil is a specific grade of crude oil and one of the main three benchmarks in oil pricing, along with Brent and Dubai Crude. WTI is known as a light sweet oil because it contains less than 0.50% sulfur (normally about 0.24% to 0.34%), making it “sweet,” and has a low density making it “light.” West Texas Intermediate, synonymous with Texas light sweet, is a grade of crude oil used as a benchmark in oil pricing. Brent acts as a benchmark for the purchase of approximately two-thirds of the world’s internationally traded crude oil supplies. Grasping the distinction between these two oil benchmarks is crucial for investors, industry professionals, and anyone interested in the dynamics of global energy. W&T Offshore Incorporated explores for and produces oil and natural gas in the Gulf of Mexico.
WTI vs Oil and Gas Stocks
Investors and market analysts scrutinize the spread between Brent and WTI to extract insights into global economic trends, regional discrepancies, and market sentiments. When it comes to trading, Brent Crude’s pricing is used to set the price for approximately two-thirds of the world’s trades, while WTI predominates in the U.S. market decisions. The dichotomy of Brent Crude and West Texas Intermediate (WTI) is at the epicenter of the world’s oil markets.
The discrepancies in pricing between them can be attributed to factors like transportation costs, supply-chain efficiencies, and geopolitical changes. Understanding these forces is paramount for sound investment decisions. This spread, or price differential, is a barometer of varying factors including supply disruptions, geopolitical tensions, and inventory changes. Their chemical compositions underscore another difference.
Though Brent crude and WTI crude are the most popular benchmarks, their prices are often contrasted. The difference in price between Brent and WTI is called the Brent-WTI spread. The company sells crude oil and condensate, natural gas liquids, and natural gas. W&T Offshore, Inc. was founded in 1983 and is headquartered thinkmarkets review in Houston, Texas. Since the shale boom in the U.S., which resulted in a production increase of WTI, the price of WTI has gone down and usually trades at a discount to Brent. Brent is also tied to more worldwide oil markets and serves as an international benchmark, meaning that more factors are influencing its price.
All market data (will open in new tab) is provided by Barchart Solutions. WTI is the underlying commodity of the New York Mercantile Exchange’s (NYMEX) oil futures contract and is considered a high-quality oil that is easily refined.
Furthermore, transporting WTI overseas to Brent crude’s market could come at a cost that would make WTI unable to compete with Brent crude in terms of pricing. WTI is not the most commonly used benchmark globally, that honor goes to Brent, where two-thirds of oil contracts globally use Brent as a benchmark. Both, however, are considered high-quality oils and are therefore the two most important oil benchmarks in the world. As mentioned, WTI has a sulfur content between 0.24% and 0.34%, whereas Brent has a sulfur content between 0.35% to 0.40%. The lower the sulfur content of an oil, the easier it is to refine, making it more attractive. Both benchmark oils are considered sweet, but WTI is sweeter making it a bit easier to refine.