As of October 24, 2024, West Texas Intermediate (WTI) crude oil is trading at $71.08 per barrel, reflecting a 0.85% increase from the previous day. However, year-to-date, WTI prices have decreased by 3.21%. In comparison, Brent crude oil is priced at $75.01 per barrel, up 0.64% in the last 24 hours, but down 5.12% year-to-date.
Current Crude Oil Prices
- WTI Crude Oil
- Price: $71.08/bbl
- 24-Hour Change: +0.85%
- Year-to-Date Change: -3.21%
- Brent Crude Oil
- Price: $75.01/bbl
- 24-Hour Change: +0.64%
- Year-to-Date Change: -5.12%
Recent Price Trends
WTI crude has seen a decline in 2024, dropping 16.91% over the past three years. The lowest price for WTI this year was $64.78 per barrel on September 10, while its highest price was $87.85 on April 5. This current price is about 19.09% lower than its peak.
Brent crude also reached a low of $68.33 per barrel on September 11 and peaked at $92.58 on April 12, which is 18.98% above its current price.
Understanding Crude Oil
Crude oil is a vital global commodity, serving as a primary energy source and a raw material for various products like plastics and chemicals. In the U.S., most crude oil is refined into essential petroleum products, including gasoline, diesel, and heating oil.
The prices of WTI and Brent crude oil are influenced by multiple factors that affect supply and demand:
- Weather Conditions: Weather can significantly impact demand for heating oil and natural gas, influencing prices.
- Geopolitical Events: Global conflicts and natural disasters can disrupt oil production, leading to supply shortages.
- Economic Growth: Demand for industrial energy rises during economic booms and falls during recessions.
- OPEC Decisions: The Organization of the Petroleum Exporting Countries (OPEC) can influence global oil supplies by adjusting production levels.
Key Differences Between WTI and Brent Crude
- Extraction Locations:
- WTI is extracted from oilfields in Texas, North Dakota, and Louisiana.
- Brent is sourced from the North Sea near Europe.
- Oil Composition:
- WTI is lighter and sweeter than Brent, with a lower sulfur content.
- Market Influence:
- WTI prices are affected more by U.S. politics, while Brent is influenced by international events.
- Trading Exchanges:
- WTI futures are primarily traded on the New York Mercantile Exchange (NYMEX).
- Brent futures are mainly traded on the Intercontinental Exchange (ICE).
- Pricing Trends:
- While WTI and Brent prices are closely correlated, Brent has historically traded at a slight premium over WTI.
Oil Futures Explained
Investors often speculate on oil prices through futures contracts, which are agreements to buy or sell a specified amount of oil at a set price on a future date.
- WTI Futures:
Most popular WTI crude oil futures are traded on NYMEX, with each contract representing 1,000 barrels. Trading occurs Sunday to Friday from 6 p.m. to 5 p.m. ET. - Brent Futures:
Brent crude futures are traded on ICE under the symbol “B,” and on CME Globex under the symbol “BZ,” with similar trading hours as WTI.
Frequently Asked Questions (FAQs)
Is Saudi oil classified as Brent or WTI?
Saudi oil is neither WTI nor Brent. Saudi Aramco, the state-owned oil company, uses the Dubai/Oman benchmark for pricing oil delivered to Asia.
