• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 58 mins Is OilPrice a cover for Green Propganda
  • 6 hours Putin Paid Militants to Kill US Troops
  • 4 hours In a Nutshell...
  • 6 hours During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 6 hours Putin Forever: Russians Given Money As Vote That Could Extend Putin's Rule Draws To A Close
  • 20 mins Victor Davis Hansen on Biden's mental acuity " . . unfit to serve". 1 out of 5 Democrats admit it. How many Dem's believe it but will not admit it?
  • 1 day Biden admits he has been tested for Cognitive Decline several times. Didn't show any proof of test results.
  • 1 hour Tesla Model 3 police cars pay for themselves faster than expected, says police chief
  • 1 day Apology Accepted!
  • 6 hours The Political Genius of Donald Trump
  • 1 day Why Oil could hit $100
  • 2 days Biden came out of his basement today (Thursday) and said , "we have 120 Million deaths from Covid 19.
  • 2 days U.S. natural gas at major disadvantage in Europe and China.
  • 1 day Per most popular Indian websites it was Indian troops not Chinese troops breach of LAC that caused the clashes. If you know any Indian media that claim to the contrary please provide the link
Debt Destroys A Shale Giant

Debt Destroys A Shale Giant

Chesapeake has finally succumb to…

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

Oilprice - The No. 1 Source for Oil & Energy News