On average, they anticipate the company’s stock price to reach $7.90 in the next year. This suggests a possible upside of 164.7% from the stock’s current price. View analysts price targets for WTI or view top-rated stocks among Wall Street analysts. Brent crude fell to its 52-week low of $68.20 per barrel on May 3, 2023.
- She holds a BSc from the London School of Economics and an MA from the University of Texas at Austin.
- Natural disasters and geopolitical conflicts worldwide can disrupt production and create oil supply shortages.
- Futures contracts are agreements to buy or sell a standardized amount of an asset at a specific price on a particular future date.
- Because the supply of crude oil is limited but demand is constantly increasing, the price of oil is also continuously rising.
- The difference in price between Brent and WTI is called the Brent-WTI spread.
The consensus among Wall Street equities research analysts is that investors should “buy” WTI shares. View WTI analyst ratings or view top-rated stocks. Oil prices have struggled to breakout of a $10 trading range despite tensions in the Middle East. The cartel’s monthly oil report showed overall output from members fell by 350,000 barrels a day in January, but almost half of the decline came from Libya due to supply outages. Browse news and quotes for dozens of commodity futures, or select a commodity for charting and rate data. Though European gas prices have tumbled 37% since November, Goldman Sachs says that’s due to demand destruction, and structural headwinds remain.
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. Natural disasters and geopolitical conflicts worldwide can disrupt production and create oil supply shortages.
Futures are down 7.3% since last Friday — the biggest weekly tumble since early October. Oil slumped as talks to pause the Israel-Hamas war reduced crude’s geopolitical risk premium, with the decline accelerating after the commodity slipped below key technical levels. Brent futures rose by 1.08% to $79.41/bbl, as of 9 a.m. WTI futures rose by 0.79% to $73.78/bbl, as of 9 a.m. Farran Powell is the lead editor of investing at USA TODAY Blueprint.
About West Texas Intermediate Crude Oil cash
The company sells crude oil, natural gas liquids, and natural gas. W&T Offshore, Inc. was founded in 1983 and is headquartered in Houston, Texas. 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.” Brent futures traded around $79.41/bbl, an increase of 1.08% in the last 24 hours.
West Texas Intermediate (WTI): Definition and Use as a Benchmark
W&T Offshore declared a quarterly dividend on Wednesday, November 8th. Stockholders of record on Tuesday, November 28th will be given a dividend of $0.01 per share on Friday, December 22nd. This represents a $0.04 dividend on an annualized basis and a yield of 1.34%. The company is scheduled to release its next quarterly earnings announcement on Tuesday, March 5th 2024.
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Each CL contract represents 1,000 barrels of oil, and the contracts trade Sunday to Friday from 6 p.m. The commodity of crude oil is by far the world’s most important energy source and the price of oil therefore plays an important role in industrial and economic development. The most important type of crude oil used in Europe is Brent Crude, named after the North Sea oilfield where it is extracted. Brent Crude is a particularly light crude oil which is carried from the North Sea to the Sullom Voe Terminal on Mainland, Shetland by an underwater pipeline. From there, the crude oil is transported by tanker.
WTI futures traded at $73.78 per barrel, as of 9 a.m. 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. Brent futures traded around $81.79/bbl, an increase of 0.81% in the last 24 hours. WTI futures traded at $76.55 per barrel, as of 9 a.m.
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Crude oil is also used in cosmetics and medicines. Because the supply of crude oil is limited but demand is constantly increasing, the price of oil is also continuously rising. Because crude oil is needed to manufacture other primary materials, it is the world’s most important commodity. The US investment bank Goldman Sachs estimates the proportion of crude oil used for primary materials production to be 45 per cent. On an international level there are a number of different types of crude oil, each of which have different properties and prices. The types of crude oil come from regions as diverse as Alaska North Lope, Arab Light or Zueitina in Libya.
The West Texas Intermediate contract for March gained 8 cents to settle at $76.92 a barrel. The Brent contract for April settled at $82 a barrel, down 19 cents or .23%. West Texas Intermediate fell 2.1% to settle around $72 a barrel.
Oil (WTI) Futures
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. Theoretically, WTI crude should trade https://g-markets.net/ at a premium to Brent crude, given the quality, but this is not always the case. While the two crude oil varieties can trade at similar price points, each one has its own unique supply and demand market, and therefore its price reflects its individual market fundamentals.
That’s 0.15% higher than the current futures price. That’s 19.86% higher than the current futures price. 1 Wall Street double top forex equities research analysts have issued “buy,” “hold,” and “sell” ratings for W&T Offshore in the last twelve months.
The hub has 90 million barrels of storage capacity and accounts for 13% of U.S. oil storage. The inbound and outbound capacity is 6.5 million barrels a day. Cushing is known as “The Pipeline Crossroads of the World.” 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. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
W&T Offshore saw a increase in short interest in the month of January. As of January 31st, there was short interest totaling 19,170,000 shares, an increase of 9.9% from the January 15th total of 17,450,000 shares. Based on an average trading volume of 2,830,000 shares, the days-to-cover ratio is presently 6.8 days. Approximately 19.8% of the company’s stock are sold short. All market data (will open in new tab) is provided by Barchart Solutions. West Texas Intermediate prices have drifted lower in 2024, but prices are up 29.80% over the past three years.
The U.S. and global economies experience much higher industrial energy demand during periods of strong economic growth and lower demand during economic downturns. Finally, the Organization of the Petroleum Exporting Countries can significantly alter global crude oil supplies by increasing or cutting production. 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. 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 Mexico.
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