Crude oil futures closed with a second straight loss Tuesday, taking a sliver of profits after hitting nearly six-month highs sparked by geopolitical risks and tight supply.
Talks for a ceasefire in the Gaza war continued, but oil’s losses were limited following reports that Israel and Hamas are still far from an agreement.
The bank said it sees tightness in Q2 and Q3 with OPEC supply restraints, some downside to Russia production, and a seasonal upswing in demand ahead.
Its assessment of market fundamentals remains the same, but “when it comes to geopolitical risk, however, even small probabilities can add several dollars to oil prices,” according to Morgan Stanley analysts including Martijn Rats.
Spot crude could hit $100/bbl this year if OPEC+ maintains its production discipline and continues to withhold crude from the global markets, Vitol CEO Russell Hardy said.
In a supply constrained market with oil consumption set to grow by 1.9M bbl/day in 2024, a similar level to last year, oil at “$80-$100 feels a sensible range for the market given the OPEC control of inventories around the world,” Hardy told the Financial Times Commodities Global Summit in Switzerland.
Front-month Nymex crude (CL1:COM) for May delivery finished -1.4% to $85.23/bbl, and front-month June Brent crude (CO1:COM) closed -1% to $89.42/bbl.
The U.S. Energy Information Administration raised its average price estimate for Brent crude this year to $89/bbl from $87, which it said “reflects our expectation of strong global oil inventory draws during this quarter and ongoing geopolitical risks,” adding that it forecasts an average $90/bbl for Brent in Q2.
Extended OPEC+ output cuts “add to upward price pressure right at a time of the year when oil demand typically increases because of the spring and summer driving seasons in the Northern Hemisphere,” the EIA said.
Oil prices have climbed in recent weeks, spurred by concerns over supplies and geopolitical risks, including wars in Ukraine and the Middle East. Analysts say the momentum could carry prices higher.
The price of a barrel of Brent crude oil, the international benchmark, has risen more than 20 percent since mid-December. It has jumped more than 10 percent over the past month alone, to around $90 per barrel. “The sentiment is really bullish,” said Viktor Katona, an analyst at Kpler, a commodities research firm.
Rising oil prices could make efforts by central banks to reduce inflation more challenging. In the United States, higher gasoline prices during the summer driving season would also be unwelcome for the Biden administration, which faces a difficult election in November. The average price at the pump has risen about 50 cents per gallon since early January, to around $3.70, according to the Energy Information Administration.
Market watchers note that a short-term retreat in prices, after such a rapid rise, is also possible. The oil price also remains below the peaks reached in 2022, when prices jumped well above $100 a barrel.
In 2023, strong growth in crude output from the United States, the world’s largest oil producer, and other countries outside the Organization of Petroleum Exporting Countries helped reassure markets that there would be enough oil to slake demand. Prices remained subdued for much of the year despite the threats posed by geopolitical tensions. Initially, markets largely shrugged off the risks posed by the conflict between Israel and Hamas.
But 2024 looks like a very different year. Demand has been stronger than some analysts expected. And a series of potentially disruptive events — along with production cuts by Saudi Arabia and its allies — have raised worries of a potential supply squeeze.
The most unsettling development was the killing of a group of Iranian Revolutionary Guard commanders in an airstrike in Damascus, Syria, on April 1. Iran pledged to retaliate, raising fears that its actions could pull key exporters in the Persian Gulf into the conflict, which began with the Hamas attack on Israel in October.
“That’s always been the fear since Oct. 7, the direct confrontation between Iran, the U.S. and Israel,” said Jim Burkhard, vice president and head of research for oil markets, energy and mobility at S&P Global Commodity Insights.
The Middle East conflict has had little effect on oil supplies so far, Mr. Burkhard said, but markets will be on edge until they see how the face-off between Israel and Iran plays out.
The continuing effort by the group of oil producers known as OPEC Plus to limit oil supplies adds to the edginess. Largely orchestrated by Saudi Arabia’s oil minister, Prince Abdulaziz bin Salman, these production trims are removing around five million barrels a day, or potentially around 5 percent of supply, from the market.
There is always skepticism about whether OPEC will stick to its commitments, but it is dawning on the markets that these cuts may not be relaxed anytime soon unless prices rise substantially. “We don’t expect a formal increase out of OPEC Plus unless prices are above $100” a barrel, Mr. Burkhard said.
Instead, the Saudi-led group has focused on signaling its resolve. In March, several members announced the extension of production cuts through June. To drive the point home, OPEC Plus said in a news release on April 1 that two of its members, Iraq and Kazakhstan, had agreed to “compensate for overproduction.”
The Middle East is not the only potential source of disruption for oil markets. Russia has been making slow gains in its war with Ukraine, while Kyiv has figured out how to use drones and missiles to inflict significant damage on Russian oil infrastructure, at least temporarily reducing Russia’s ability to produce products like diesel and gasoline.
Ukraine’s aim is apparently to try to reduce the revenue Russia has available to fund the war, but the impact could be felt in world petroleum markets. Knocking out plants “tightens up” the global trade in energy products, said David Fyfe, chief economist at Argus Media, a commodities research firm. “That is helping juice up crude prices as well.”
Analysts say a further lift may come in the summer, when seasonal demand is typically high as people take to cars and planes for vacation trips.
Tensions could come to a head in early June when the ministers from OPEC Plus plan to gather in Vienna to decide how much oil to put into the market. Some members of the group may want to see an increase in production, but the Saudis are likely to resist, analysts say.
Richard Bronze, the head of Energy Aspects, a research firm, said, “The Saudis are setting their policy on what they think is right for the oil market and their budget, and there is very little leverage that Washington has at present to get them to consider loosening.”
FXEmpire.com – Natural gas closed above its 50-Day MA for the first time since mid-January on Monday. That is a sign of strength that should see demand increase in the coming days. A teaser occurred today as natural gas rallied above the recent 1.91 minor swing high before encountering resistance at the day’s high of 1.92. An intraday selloff followed back to the lows of the day. Where it closes relative to the day’s range should provide a clue as to current sentiment.
Advance Continues Following 50-Day MA Breakout
There was minor confirmation of strength since the breakout above the 50-Day MA, as the 8-Day MA crossed above the 50-Day today for the first time since mid-January, today. Also, yesterday the 20-Day MA was successfully tested as support for the first time since the price of natural gas rallied back above the 20-Day line on April 1.
That cleared the way for further strengthening, which we saw yesterday and then again today. What happens next will be key though as a failed breakout is always possible. A second daily close above the 50-Day line today would dampen that possibility. Then, we need to see signs of further strengthening if natural gas is going to have a chance at reaching higher targets.
Potential Double Bottom Setup
A rally above the 2.01 (B) swing high will trigger a breakout of a double bottom bullish reversal pattern and a continuation of the current developing uptrend. At that point there would be a higher swing high that would follow the recent higher swing low (C). The first identified target from current levels is the completion of a small rising ABCD pattern at 2.08.
At that price the CD leg of the advance will match the price appreciation seen in the first leg up, marked A to B. Once there is price symmetry a potential resistance zone has been reached. There are also interim price targets on the way up to the double bottom target of 2.50.
Higher Targets
The consolidation high following the large gap down in late-January is at 2.17. However, the more notable 38.2% Fibonacci retracement level is at 2.24. That price level takes on a somewhat greater significance since it is also match with prior support at the December swing low.
For a look at all of today’s economic events, check out our economic calendar.
An industry leader in Melbourne has called on Australian cafes to “be brave” and boost their coffee prices or risk closing their doors.
Sky News host James Macpherson says the cost of living crisis is about to get worse as the price of your morning coffee is “about to go up”.
St Ali coffee roasters chief executive, Lachlan Ward, told the Herald Sun on Tuesday cafes need to “be brave and adjust up” or risk closing their doors.
“The way we are pricing coffee in Australia is not sustainable,” Mr Ward said.
“Unless Australian cafes start adjusting prices up and charging a fair price for what we are making, the independent cafe won’t exist in the future.”
A survey conducted by The Conversation last month of specialty venues across Australia’s capital cities found the average price of a small takeaway flat white is $4.78.
But, Mr Ward said, Aussies should be paying a minimum $5.50 for the beverage (at St Ali’s South Melbourne outpost, the dine-in cost of a regular flat white is $6.50).
“We have incredible operators and beautiful cafes closing down weekly, we can’t look at cutting prices. Cutting isn’t good for any business,” he said.
‘The way we are pricing coffee in Australia is not sustainable.’ Picture: Linda Higginson
St Ali chief executive Lachlan Ward. Picture: Facebook
Given our national penchant for whinging about coffee prices, Mr Ward’s comments, unsurprisingly, proved divisive among consumers.
One man deemed his remarks “idiotic”, while some said they reflected why they now get their caffeine fix at home.
“LOL! I’m sure it’s delicious but when you grab a coffee from 7/11 or Maccas for change (for the few of us that still use coins) how long do you expect to stay in business? People are cutting costs wherever they can but clearly in your fantasy land you believe they will pay a fortune for your coffee. Good luck with that!” another reader wrote in to the Herald Sun.
One of the key factors keeping coffee prices low in Australia is ‘consumer expectation’. Picture: NCA NewsWire/Nicki Connolly
A third said: “When having a daily coffee becomes a financial consideration rather than a casual enjoyment (due to cost) then sales will drop off quickly – this line is fast approaching.”
“Ordinary middle class people are being squeezed out of any luxuries by elites, government taxes and social engineering,” another complained.
“Consumers will determine the market price. Charge what you want. People will either buy it or not. But don’t complain when you price yourself out of the market.”
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Others, however, said the rising price is par for the course given “costs for cafes to make great coffee have risen exponentially”.
“Cafes are the canary in the coal mine. I don’t think the general population understand the financial squeeze most are under, and they are going broke in record numbers,” one pointed out.
As adjunct senior researcher at the University of South Australia, Emma Felton, wrote for The Conversation, “given the quality of our coffee and its global reputation, it shouldn’t surprise us if we’re soon asked to pay a little bit more for our daily brew”.
“By international standards, Australian coffee prices are low. No one wants to pay more for essentials, least of all right now. But our independent cafes are struggling,” she said.
“By not valuing coffee properly, we risk losing the internationally renowned coffee culture we’ve worked so hard to create, and the phenomenal quality of cup we enjoy.”
Data compiled by The Conversation found the average price of a small takeaway flat white at specialty venues is $4.78. Picture: The Conversation
One of the key factors keeping coffee prices low in Australia, Dr Felton said, is “consumer expectation”.
“For many people coffee is a fundamental part of everyday life, a marker of liveability. Unlike wine or other alcohol, coffee is not considered a luxury or even a treat, where one might expect to pay a little more, or reduce consumption when times are economically tough. We anchor on familiar prices,” she said.
“Because of this, it really hurts cafe owners to put their prices up. In touch with their customer base almost every day, they’re acutely aware of how much inflation can hurt … But specialty cafes face much higher operating costs, and when they’re next to a commodity-grade competitor, customers are typically unwillingly to pay the difference.”
Melbourne Coffee Academy director Charles Skadiang echoed the sentiment in a March interview with Yahoo Finance, pointing to the cost of beer in Australia increasing with indexation.
Mr Skadiang noted there’s far more skill involved in producing a high-quality coffee than pouring a pint.
“The thought of paying $7 for a cup of coffee is outrageous for a lot of people,” he said.
“But the amount of work that goes into it, you’ve got a skilled barista to train someone up to make a great coffee, it takes a lot of time.”
Crude oil inventories in the United States rose this week by 3.034 million barrels for the week ending April 5, according to The American Petroleum Institute (API). Analysts had expected an inventory build of 2.415 million barrels.
This comes after the API reported a 2.286 million barrel dip in crude inventories in the week prior.
On Tuesday, the Department of Energy (DoE) reported that crude oil inventories in the Strategic Petroleum Reserve (SPR) rose by another 0.6 million barrels as of April 5. Inventories are now at 364.2 million barrels-the highest point since last April.
Oil prices were trading down ahead of the API data release on Tuesday as ceasefire talks continue, with losses capped by the failure to make significant progress in reaching a deal that would end the conflict.
At 4:13 pm ET, Brent crude was trading down 0.96% on the day at $89.51, although still up nearly $1 per barrel from this time last week. The U.S. benchmark WTI was also trading down on the day by 1.26% at $85.34, up roughly $.30 per barrel compared to last Tuesday.
Gasoline inventories fell this week by 609,000 barrels, after falling 1.416 million barrels in the week prior. As of last week, gasoline inventories were about 3% below the five-year average for this time of year, according to the latest EIA data.
Distillate inventories rose this week by 120,000 barrels, after last week’s 2.548-million-barrel loss. Distillates were 7% below the five-year average for the week ending March 29, the latest EIA data shows.
Cushing inventories saw a build this week, rising 124,000 barrels after falling by 781,000 barrels in the previous week.
Iranian people are standing in front of an anti-U.S. and anti-Israeli banner during a rally commemorating International Quds Day, also known as Jerusalem Day, and attending a funeral for members of the IRGC Quds Force who were killed in an Israeli air strike in Syria, in Tehran, Iran, on April 5, 2024.
Morteza Nikoubazl | Nurphoto | Getty Images
Crude oil futures rose Wednesday after two days of losses as Israel threatened to attack Iran if the Islamic Republic strikes Israel directly.
The West Texas Intermediate contract for May delivery gained 31 cents, or 0.36%, to $85.54 a barrel. June Brent futures added 28 cents, or 0.31%, to $89.70 a barrel.
The gains from geopolitical tensions were offset slightly by a hotter than expected inflation report. Oil prices pulled back after the consumer price index rose 0.4% for March and 3.5% over the previous year, compared with expected gains of 0.3% and 3.4%, respectively.
Israel warned OPEC member Iran Wednesday it would attack the Islamic Republic if Tehran strikes Israel.
“If Iran attacks from its territory, Israel will react and attack Iran,” Israeli Foreign Minister Israel Katz said on the social media platform X, tagging Supreme Leader Ayatollah Ali Khamenei.
Oil Prices, Energy News and Analysis
Khamenei has threatened to punish Israel after Iran’s consulate in Damascus, Syria, was destroyed in a missile attack last week, killing seven Iranian military officials. Israel has not claimed responsibility for the strike, but the U.S. has assessed that Israel is responsible.
“Consulates and embassies of any country are regarded as the soil of that country. When they attack our consulate, it means that they have attacked our soil,” Khamenei said Wednesday in a speech in Tehran after leading prayers for the Eid al-Fitr holiday.
Oil prices haven fallen more than 1% this week as investors booked profits after last week’s rally. U.S. crude and the global benchmark have gained nearly 20% and 17%, respectively, this year as geopolitical tensions mount against the backdrop of a tightening global crude market.
An industry leader in Melbourne has caused a brew-haha after declaring Aussies aren’t paying enough for their daily cup of coffee.
St Ali coffee roasters chief executive, Lachlan Ward, told the Herald Sun on Tuesday cafes need to “be brave and adjust up” or risk closing their doors.
“The way we are pricing coffee in Australia is not sustainable,” Mr Ward said.
“Unless Australian cafes start adjusting prices up and charging a fair price for what we are making, the independent cafe won’t exist in the future.”
A survey conducted by The Conversation last month of specialty venues across Australia’s capital cities found the average price of a small takeaway flat white is $4.78.
But, Mr Ward said, Aussies should be paying a minimum $5.50 for the beverage (at St Ali’s South Melbourne outpost, the dine-in cost of a regular flat white is $6.50).
“We have incredible operators and beautiful cafes closing down weekly, we can’t look at cutting prices. Cutting isn’t good for any business,” he said.
Given our national penchant for whinging about coffee prices, Mr Ward’s comments, unsurprisingly, proved divisive among consumers.
One man deemed his remarks “idiotic”, while some said they reflected why they now get their caffeine fix at home.
“LOL! I’m sure it’s delicious but when you grab a coffee from 7/11 or Maccas for change (for the few of us that still use coins) how long do you expect to stay in business? People are cutting costs wherever they can but clearly in your fantasy land you believe they will pay a fortune for your coffee. Good luck with that!” another reader wrote in to the Herald Sun.
A third said: “When having a daily coffee becomes a financial consideration rather than a casual enjoyment (due to cost) then sales will drop off quickly – this line is fast approaching.”
“Ordinary middle class people are being squeezed out of any luxuries by elites, government taxes and social engineering,” another complained.
“Consumers will determine the market price. Charge what you want. People will either buy it or not. But don’t complain when you price yourself out of the market.”
Others, however, said the rising price is par for the course given “costs for cafes to make great coffee have risen exponentially”.
“Cafes are the canary in the coal mine. I don’t think the general population understand the financial squeeze most are under, and they are going broke in record numbers,” one pointed out.
As adjunct senior researcher at the University of South Australia, Emma Felton, wrote for The Conversation, “given the quality of our coffee and its global reputation, it shouldn’t surprise us if we’re soon asked to pay a little bit more for our daily brew”.
“By international standards, Australian coffee prices are low. No one wants to pay more for essentials, least of all right now. But our independent cafes are struggling,” she said.
“By not valuing coffee properly, we risk losing the internationally renowned coffee culture we’ve worked so hard to create, and the phenomenal quality of cup we enjoy.”
One of the key factors keeping coffee prices low in Australia, Dr Felton said, is “consumer expectation”.
“For many people coffee is a fundamental part of everyday life, a marker of liveability. Unlike wine or other alcohol, coffee is not considered a luxury or even a treat, where one might expect to pay a little more, or reduce consumption when times are economically tough. We anchor on familiar prices,” she said.
“Because of this, it really hurts cafe owners to put their prices up. In touch with their customer base almost every day, they’re acutely aware of how much inflation can hurt … But specialty cafes face much higher operating costs, and when they’re next to a commodity-grade competitor, customers are typically unwillingly to pay the difference.”
Melbourne Coffee Academy director Charles Skadiang echoed the sentiment in a March interview with Yahoo Finance, pointing to the cost of beer in Australia increasing with indexation.
Mr Skadiang noted there’s far more skill involved in producing a high-quality coffee than pouring a pint.
“The thought of paying $7 for a cup of coffee is outrageous for a lot of people,” he said.
“But the amount of work that goes into it, you’ve got a skilled barista to train someone up to make a great coffee, it takes a lot of time.”
The price of platinum opened at $971.05 per ounce, as of 9 a.m. That’s down 1.40% from the previous day and down 1.69% from the beginning of the year.
The lowest trading price within the last day: $964.10 per ounce. The highest platinum spot price in the last 24 hours: $988.85 per ounce.
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Platinum spot price
Platinum price chart
The chart below shows how the spot price of platinum is trending over the year.
Year to date, platinum is down 1.69%, as of 9 a.m. The 52-week high reached $1,135.49 on April 21, 2023, and the 52-week low dropped to $843.15 on Nov. 10, 2023.
The precious, silvery-colored metal is priced in U.S. dollars. This means that the fluctuations in the value of the U.S. dollar can impact its price.
The price of XPT/USD reflects the value of one ounce of platinum in U.S. dollars, and it is traded like traditional currency pairs. Because platinum trades occur globally, investors can also track the spot price of platinum in other currencies, such as XPT/EUR for euros and XPT/GBP for British pounds.
Factors that can influence the price of platinum include changes in demand, geopolitical events and tensions in major platinum-producing countries. Of course, investor opinion and speculation can also affect prices.
Precious metals spot prices
Platinum is one of four main precious metals investors can trade via physical bullion, exchange-traded products or futures contracts. Gold, silver and palladium spot prices are also updated 24/7 in various currencies.
Platinum vs. gold price
Currently, platinum trades at $971.05 per ounce, as of 9 a.m., compared to gold, which trades at $2,338.47 per ounce. Year to date, platinum prices are down by 1.69% and gold prices are up by 13.17%.
“Historically, platinum has often been more expensive than gold due to its relative scarcity and unique properties. However, the price of platinum can fluctuate in response to changing market conditions,” said John Bergquist, president of Elysium Financial.
Political instability and supply disruptions in major platinum-producing regions like South Africa and Russia affect prices.
The silvery metal also tends to be a less reliable store of value than gold.
While historically, platinum has been pricier than gold, that flip-flopped briefly in August 2011. When looking at the gold-to-platinum price ratio, platinum was priced above gold from January 2013 until December 2014. Since then, gold has more than doubled its value compared to platinum prices.
Platinum price history
Like any metal, the price of platinum can be volatile. Various factors affect it, the most significant being supply and demand dynamics. Other factors, such as economic conditions, geopolitical events, and changes in industrial and investment demand, can also impact the price of platinum.
At the start of the new millennium, the precious metal’s spot price was around $420. Fast-forward over 20 years, and the current price of platinum has more than doubled.
The spot price soared to new heights, trading in February 2008 at around $2,200 per troy ounce. In November of that year, the price returned to less than $1,000.
Platinum’s spot price has fluctuated between around $800 to $1,400 for the past decade, hovering around the $1,000 threshold on average.
Platinum prices today remain historically low. Prices dropped as low as $623.50 in March 2020 during the COVID-19 pandemic. While prices have recovered, platinum is nowhere near its all-time high of $2,213.20, set on March 3, 2008.
Platinum futures
Futures contracts let investors speculate on the future price movements of an underlying asset like platinum.
These financial contracts represent an agreement between two parties to trade a set amount of platinum at a specified price at a future date. They can be settled by exchanging the physical commodity or cash in place of the commodity.
Futures contracts differ from spot prices in that futures contracts establish a future price whereas spot prices are for immediate delivery. These contracts can be fulfilled by trading the physical commodity or exchanging cash in place of the underlying asset. They are usually traded through an exchange.
Platinum as an investment
The automotive industry creates the highest demand for platinum. Platinum is a key component in manufacturing catalytic converters, which are responsible for reducing vehicle emissions.
In addition to the automotive industry, platinum is widely used in the industrial industry to create medical products, nitric acid and glass. As the demand for these products rises, so does the price of platinum.
It is anticipated that platinum will play an essential role in the development of hydrogen technology. Platinum is used to produce carbon-free hydrogen from renewable energy.
“If hydrogen-based power meets expectations in the coming decade, then one could expect a material demand tailwind in platinum,” said Stash Graham, managing director of Graham Capital Wealth Management.
Precious metals such as platinum, gold and silver have long been used to diversify an investment portfolio.
When choosing investments, it is crucial to consider potential drawbacks. While there may be an increase in the demand for platinum, other factors may throw a wrench in the investment benefits.
When considering an investment, it is essential to consider your current holdings and individual financial goals.
Platinum is rarer than both silver and gold, which could make it attractive to investors seeking a scarce metal. This practice helps protect other holdings, such as stocks, in an economic downturn. Investing in platinum can help balance inflation and economic uncertainties.
Frequently asked questions (FAQs)
The London Bullion Market Association is responsible for price auctions of platinum and other industrial metals.
Platinum pricing is set independently from gold and silver prices, yet there is a historical correlation between the prices of these metals. Although platinum is rarer than silver and gold, metals with industrial uses tend to fluctuate similarly.
At least three people have been reported dead and five more injured following an explosion at a hydroelectric plant in northern Italy, the Associated Press reported on Wednesday, noting that at least four others remain missing in the accident in the latest update.
“We are working, but with a few hopes of finding missing people alive,” a firefighter spokesperson told AP on Wednesday, adding that. “We are working in very complex and difficult conditions. The floor hit by the explosion was dry and now has 50 centimeters (19 inches) of water.”
The explosion took place after the collapse of the underground structure during maintenance work on Italian utility giant Enel’s Bargi plant, south of the city of Bologna. The hydroelectric facility is an aging, massive, nine-story underground behemoth, and collapse of the structure led to a fire and flooding, AP reported, citing the local media.
“With reference to the serious accident that occurred at the Bargi power plant near Bologna, Italy, Enel Green Power once again expresses its deepest condolences and closeness to all the victims and their families,” Enel said in a statement, noting that Enel Green Power CEO Salvatore Bernabei visited the site of the disaster to personally coordinate with the authorities.
According to Enel, maintenance testing for a second electricity generation group was underway when the structure collapsed. There was no damage to the dam, according to Enel.
At the time of writing, the search effort for those reported missing was still underway. According to Italy’s SKY news, three of those injured remain in serious condition.
The deadly explosion highlights an increasingly sensitive worker safety issue in Italy, prompting two of the biggest trade unions to announce a four-hour nationwide strike for Thursday, AP reports.
WTI futures traded at $85.80 per barrel, as of 9 a.m. ET. Year to date, WTI prices are up by 16.83%.
Brent futures traded around $90.34/bbl, a drop of 0.45% in the last 24 hours. Year to date, Brent prices are up by 14.27%.
What is the West Texas Intermediate (WTI) crude oil price today?
WTI futures fell by 0.61% to $85.80/bbl, as of 9 a.m. ET.
WTI oil price chart
West Texas Intermediate prices have drifted lower in 2024, but prices are up 44.59% over the past three years.
WTI crude fell to its 52-week low of $64.00 per barrel on May 3, 2023. It reached its 52-week high of $95.52 on Sep. 27, 2023. That’s 10.18% higher than the current futures price.
Brent crude oil price
Brent futures fell by 0.45% to $90.34/bbl, as of 9 a.m. ET.
Brent crude oil price chart
Brent crude oil is generally subject to the same supply and demand factors that influence WTI crude prices, so the long-term price chart looks extremely similar to the WTI chart.
Brent crude oil prices hit their all-time high of $147.50/bbl during the oil market boom in July 2008. However, WTI futures contract prices dropped to as low as negative $40/bbl on April 20, 2020, driven largely by a lack of U.S. storage options during the COVID-19 pandemic. Brent futures contracts remained well above zero, bottoming at around $25/bbl that day.
Brent crude fell to its 52-week low of $68.20 per barrel on May 3, 2023. It reached its 52-week high of $96.62 on Sep. 27, 2023. That’s 0.06% higher than the current futures price.
What is crude oil?
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.
The prices of U.S. WTI crude oil and international Brent crude oil are influenced by several factors that can change the market’s supply and demand balance.
The weather in the U.S. market can drastically alter near-term demand for heating oil and natural gas, sending crude oil prices higher.
Natural disasters and geopolitical conflicts worldwide can disrupt production and create oil supply shortages. 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.
WTI
WTI crude is a blend of oils extracted from U.S. oilfields in Texas, North Dakota and Louisiana and is delivered to Cushing, Oklahoma.
WTI oil has an American Petroleum Institute gravity of 39.6 degrees, considered “light.” WTI also has a sulfur content of just 0.24%, making it very “sweet.” WTI crude oil is typically the benchmark for U.S. oil prices in the trading world.
Brent crude
Brent crude is a sweet, light blend of oils extracted from the North Sea near Europe.
Brent crude is oil extracted from the Brent, Ekofisk, Forties and Oseberg oil fields. 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.
WTI vs. Brent crude
WTI and Brent crude oil blends are both sweet, light crude oil bends used as benchmarks in financial markets. However, there are five key differences between WTI and Brent:
Extraction: WTI is extracted from U.S. oilfields in Texas, North Dakota and Louisiana, while Brent crude is extracted from the North Sea near Europe.
Composition: WTI is slightly lighter and sweeter than Brent oil.
Geopolitics: WTI prices are more heavily influenced by U.S. politics and policies, while international politics and embargoes have a greater influence on Brent prices.
Exchange: Brent crude futures contracts are primarily traded on the Intercontinental Exchange (ICE), while WTI futures contracts are primarily traded on the New York Mercantile Exchange (NYMEX).
Pricing: WTI and Brent crude oil prices are very highly correlated, but Brent oil has historically traded at a slight pricing premium to WTI.
Brent Crude/WTI spread
The difference between the spot price of Brent crude and WTI crude is called the Brent/WTI spread.
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.
Crude oil futures prices
One of the most popular ways investors speculate on crude oil and other commodity prices is by trading futures contracts. Futures contracts are agreements to buy or sell a standardized amount of an asset at a specific price on a particular future date.
WTI crude futures
The most popular WTI crude oil futures contracts are traded on the NYMEX. Each CL contract represents 1,000 barrels of oil, and the contracts trade Sunday to Friday from 6 p.m. to 5 p.m. U.S. ET.
Brent crude futures
The most popular Brent Crude Oil futures contracts are traded on the ICE under the symbol B, but investors can also trade the contracts on the CME Globex trading platform under the symbol BZ. Trading hours for Brent futures on CME are the same as WTI futures: Sunday to Friday from 6 p.m. to 5 p.m. U.S. ET. But Brent futures on ICE trade from 8 p.m. to 6 p.m. U.S. ET on ICE business days.
Frequently asked questions (FAQs)
To buy and sell crude oil futures contracts, you must open a brokerage account that offers commodity futures trading. The primary futures contracts for WTI crude oil trades on the NYMEX under CL. The primary futures contracts for Brent crude oil trades on the ICE under the symbol B.
Anyone can buy or sell popular oil stocks simply by opening and funding a standard brokerage account.
Popular oil stocks include global oil majors like Exxon Mobil (XOM), oil and gas exploration and production companies like ConocoPhillips (COP), and oil and gas midstream pipeline companies like Enbridge (ENB).
Saudi Arabian oil is neither WTI, extracted in the U.S., nor Brent, extracted in the North Sea near Europe. Saudi Arabia’s state-owned oil company, Saudi Aramco, uses the Dubai/Oman crude oil benchmark when pricing its oil for delivery to Asia.
