• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 8 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days The Climate Scare Stories Began With Far Left Ideology Per GreenPeace Co-Founder
  • 9 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 2 hours NordStream2
  • 11 hours Biden Sets Target Of 50% EV Share In U.S. Car Sales In 2030
  • 2 days Putin and Xi have decided not to attend the Climate Summit in Glasgow
  • 11 hours US intel warns China could dominate advanced technologies By NOMAAN MERCHANT October 22, 2021
  • 2 days "The Hidden Story About California's Container Ship Backlog" via Corbett Report
  • 2 days Storage of gas cylinders

Brent Looks Set to Replace WTI as the International Benchmark for Oil

For years WTI has been the global benchmark for oil, yet now it seems as though Brent will finally overtake it and become the hedge of choice for investors around the world, including in the US.

The reason that Brent is being preferred to WTI is that it is thought to follow more closely the movements of global risk to the oil market. Saudi Arabia, amongst many other producers has dumped the US grade oil, as have refiners, consumers, and hedge funds.

It has even gotten to the point now where Ian Taylor, the head of Vitol (the world’s largest oil trading company), asked at a recent industry conference, “can we all just forget about WTI? It's no longer an international currency of any value whatsoever.”

Related Article: How Will US Shale Oil Change the Global Energy Market?

The average volume of Brent futures traded on the InterContinental Exchange in 2012 is now more than the WTI futures traded on the New York Mercantile Exchange, by 30,000 lots a day.

The volume of Brent options has also increased massively, and whilst the market is still only about a quarter of the size of the WTI options market it has grown by more than 300 percent in 2012.

Jack Kellett, the head of oil at GFI Group, has remarked that “even U.S. mid-sized producers have begun switching from WTI to Brent in their hedging programs.”

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News