As energy efficiency standards evolve, the heating oil industry adapts to provide cleaner-burning options. Bitcoin continues to recover and reclaims $109,000 on Tuesday, following its nearly 4% correction on Friday. The highly anticipated Bitcoin 2025 Conference starts on Tuesday in Las Vegas, drawing heightened attention from traders and investors.

• Bollinger Bands plots a moving average and two standard deviations above and below it, creating a channel within which the price is expected to trade.
• Petroleum is a broad term that includes both crude oil and petroleum products.
• WTI is extracted across the US and sent via pipeline to Cushing, Oklahoma where it is stored.
• WTI crude oil is primarily refined into gasoline, which powers most vehicles on the road today.
• When economic conditions are favorable, the demand for oil products typically escalates, causing WTI prices to rise.

Fuel Production

The fundamental economic principle of supply and demand plays a significant role in WTI pricing. When demand increases, or when supply is disrupted (due to events like hurricanes or geopolitical tensions), WTI prices tend to rise. Trades on the NYMEX are typically sold in 1,000 inverted hammer candle barrel increments (42,000 gallons).

Gasoline and Distillate Inventories: Tightening Supply Conditions

This mechanism provides a way for companies to manage their risk related to oil price changes. For example, an airline might purchase futures contracts to lock in fuel prices, helping to stabilize their operating costs. The Cushing, OK delivery point was based on the Cushing Oil Field, discovered in 1912 and once a staple of American oil production.

Trading WTI in Forex

Our goal is to help empower you with the knowledge you need to trade in the markets effectively. Margin trading involves a high level of risk and is not suitable for everyone. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Blueberry Markets, and seek independent advice if necessary. Margin Forex and CFDs are highly leveraged products, which means both gains and losses are magnified. You should only trade in these products if you fully understand the risks involved and can afford to incur losses.

• China’s economic slowdown that seemed to creep up on everyone semi-unnoticed last year sparked fears of a global economic slowdown and demand for oil decreased as a result.
• Fluctuations in WTI prices affect not only the energy sector but also industries reliant on oil, such as transportation, manufacturing, and agriculture.
• Further uncertainty arose after it became clear that both Iran and Iraq were reluctant to join the pact.
• This shift in production dynamics has added a new layer of complexity to the factors affecting WTI oil prices.

The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how this product works, and whether you can afford to take the high risk of losing your money.

While trading WTI offers opportunities for profit, it also comes with inherent risks. Traders must be aware of these risks to develop effective risk management strategies. Traders can use the correlation between WTI and the USD to inform their trading strategies. For instance, when expecting the USD to weaken, a trader may consider buying WTI or related currency pairs. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result.

North Sea production can be transported directly to the European market by tankers and from there to Asia and Africa. Both financial institutions and energy companies use these futures for risk management and price discovery. These two types of oil have different characteristics due to their geographical locations. WTI is a type of oil extracted from the inner regions of the USA, such as Texas and Oklahoma.

Fuel Buying 101

Macroeconomic data and global geopolitical tensions also put pressure on Brent prices. For example, increases in how much money can i make in real estate crowdfunding the value of the US Dollar can reduce demand as it means oil becomes more expensive in terms of other currencies. Slowdowns in the Chinese or European economies can also result in lower global energy consumption, easing upward pressure on Brent. Conversely, unexpected geopolitical crises—such as the current military interventions—can send prices skyrocketing within weeks. Considering all these factors, the Brent Oil market requires a constant flow of news and analysis of economic indicators. The Organization of the Petroleum Exporting Countries (OPEC) controls most of the oil production and distribution, often dictating costs for not only oil suppliers but countries as well.

What is West Texas Intermediate (WTI) Oil? – TIOmarkets

Political instability, conflicts, or sanctions in the region can disrupt crude oil production and supply, leading to price spikes. Advances in fracking technology have increased crude oil production in the United States, potentially putting downward pressure on prices. The Organization of the Petroleum Exporting Countries (OPEC) regulates global oil supply significantly. Changes in OPEC production quotas or compliance levels can significantly impact WTI prices. WTI is valued as light oil, similar to Brent, but it doesn’t have the same worldwide reach.

Brent Oil is more sensitive to global demand changes and especially to the expectations of the European and Asian markets because it covers a wider geography. For this reason, while Brent remains the most widely used indicator in the pricing of “world oil”; WTI mainly serves as a reference in the US market. From fueling vehicles to producing essential chemicals, its applications are vast and varied. Understanding these uses helps to appreciate the role WTI crude oil plays in daily life and the economy as a whole. As the world navigates toward fxcm canada review a more sustainable energy future, the impact of WTI and its derivatives will continue to be significant. The production and refining of WTI crude oil create numerous jobs across various sectors.

It is sourced from the United States, primarily in Texas, Louisiana, and North Dakota. This specific grade is described as ‘light’ due to its relatively low density and ‘sweet’ because of its low sulfur content. Light sweet crude oil is desirable because it requires less refining and produces a high yield of high-value products like gasoline, diesel fuel, heating oil, and jet fuel. As of May 2025, WTI and Brent crude are both facing headwinds due to rising inventories, OPEC+ production adjustments, and geopolitical tensions. Despite these challenges, both benchmarks remain crucial indicators of global oil price movements. WTI, priced at $62.62, is trading just above its key support levels, with a potential for short-term fluctuations as the market reacts to inventory reports and OPEC+ decisions.

WTI crude oil is a light, sweet crude oil originating from the oil fields in Texas. It is characterized by its low density and low sulfur content, making it ideal for refining into high-quality products. WTI is often used as a benchmark for oil prices in North America and is traded on the New York Mercantile Exchange (NYMEX). The balance between global oil supply and demand is a critical factor influencing WTI oil prices. Shifts in demand from major consuming countries, geopolitical events affecting oil-producing regions, and production decisions by major oil producers all contribute to the supply-demand dynamics of the oil market. In 2023, the U.S. imported about 8.51 million barrels per day of petroleum products from 86 countries.

Another factor that can lead to significant differences between Brent Crude and West Texas Intermediate is geopolitical trouble. During times of crisis, the spread blows out as political uncertainty leads to surges in Brent Crude prices. West Texas Intermediate is less affected because it is based in landlocked areas in the United States. A surge of WTI production has led many traders to consider it an important pricing benchmark vs. Brent, if not even close to the total production of the latter.

In a matter of hours on April 20, the May 2020 contract futures price for West Texas Intermediate (WTI) plummeted from $18 a barrel to around -$37 a barrel. Oil producers were faced with a glut of crude oil that left them scrambling to find space to store the oversupply. Brent crude oil prices also tumbled, closing at $9.12 a barrel on April 21, a far cry from the $70 a barrel that crude oil fetched at the beginning of the year.