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May 12, 2023 · The WTI committee that included Krus decided on the storage hub at Cushing, Oklahoma, as the delivery point for WTI. When WTI futures were first listed in 1983, Cushing was already a vibrant hub for cash market trading of crude oil, with a network of pipelines, refineries and storage terminals: the obvious choice for the delivery point.
- Crude Oil Overview
WTI (West Texas Intermediate, a US light sweet crude oil...
- Crude Oil Overview
West Texas Intermediate (WTI) is a grade or mix of crude oil; the term is also used to refer to the spot price, the futures price, or assessed price for that oil. In colloquial usage, WTI usually refers to the WTI Crude Oil futures contract traded on the New York Mercantile Exchange (NYMEX). The WTI oil grade is also known as Texas light sweet.
- At A Glance
- "The World Needed It"
- Early Stress Tests
- Not Just About Trading Oil
Amid a volatile environment for crude oil in 1983, commodity traders in New York began trading what is now the global oil price benchmarkWTI Crude Oil futures have remained resilient in setting the price for oil through wars and economic downturnsThat year, the oil market was mostly in freefall, with Iraq and Iran at war and OPEC finding its footing. With this stormy backdrop, visionaries at NYMEX, now part of CME Group, wanted to establish a transparent market for crude oil where global market participants could come to manage the risk that defined the market. “Let’s face it: there were no...
3,000 contracts traded in the first month after the launch of WTI, and a year later, trading volume would top 100,000 contracts a month, according to CME Group data. As WTI proved its worth, volumes ramped up even more, topping two million contracts per month by the end of the 1980s. The crude futures contract was barely three years old when it fac...
For his part, McMahon is in awe of how the contract became enmeshed in the broader economy. “It's not just about trading oil. It has priced multiple industries.” Krus also became a believer because of the volumes the contract attracted. “There's three things that make a contract work, and it’s liquidity, liquidity and liquidity.” The WTI contract o...
WTI (West Texas Intermediate, a US light sweet crude oil blend) futures provide direct crude oil exposure and are the most efficient way to trade oil after a sharp rise in US crude oil production. Use WTI Crude Oil futures to hedge against adverse oil price moves or speculate on whether WTI oil prices will rise or fall.
Nowadays, the price of WTI crude oil sets the agenda for the entire commodity suite. Changes in the price of WTI can literally move economies. But back in 1983, it took some time for the new oil contract to establish itself. WTI did not take off immediately, and just 3,000 contracts changed hands in its first month of trading.
Oct 15, 2019 · Notably, it also became the settlement point for the West Texas Intermediate (WTI) oil price, a leading global oil price benchmark. ... Open 57.81 Trading Vol. 6.96M Previous Vol. 241.7B. BUY 57. ...
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May 1, 2023 · WTI did not take off immediately, and just 3,000 contracts changed hands in its first month of trading. It took another year for WTI to breach more than 100,000 contracts in a single month, but ...
