West Texas Intermediate (WTI) crude oil is a light, sweet crude oil produced in Midland, West Texas, USA. Also known as Texas Light Sweet, WTI is a type of crude oil used as a benchmark in oil pricing and the underlying commodity of the New York Mercantile Exchange’s (NYMEX) oil futures contracts. The price of this contract is widely quoted across analyst reports as the benchmark for global oil prices.
WTI crude oil also has a lower level of other impurities, as a result of which it is easier to refine. Moreover, it is easier to transport than heavy sour oil, which has a high wax content, high density and high viscosity. Due to its scarce availability, the demand for WTI crude oil is always likely to remain high. All these factors make WTI crude oil the world’s most liquid oil commodity in an electronic marketplace.
Trading WTI Oil Futures Tips
Demand Side: Weekly US Oil Inventory Data released each Wednesday is widely watched as a measure of US Demand. USA is the largest consumer of Oil.
Supply Side: OPEC meetings can result in changes to group member production Quotas.
Weather: Hurricanes can disable offshore drilling rigs which in turn affects supply. Hurricane season in the US begins on June 1st and ends November 30th.
Specifications for trading WTI Oil on the easy-forex® platform
easy-forex® Symbol for WTI Oil: OIL
Quote convention: USD per barrel, e.g. OIL/USD = 75.00 USD per barrel.
Expiration date: All OIL deals will expire at 12:00 GMT on the fourth US business day prior to the 25th calendar day of the month, preceding the relevant futures contract month. If the 25th day is a non-business day, trading shall cease on the fourth business day prior to the business day preceding the 25th calendar day. Click here to find out more about Rollover of OIL deals to new contracts.
Trading hours: Trading is conducted 22:00 until 21:00 GMT, Sunday to Friday with a daily break between 21:15 to 22:00. Outside these hours no opening or closing of deals will be allowed.
Read more about oil trading.