Oil Price Today - Brent and WTI Charts

Brent (Brent Crude) is the name for oil produced from the North Sea (Europe), with the name Brent derived from mining fields in the North Sea. Brent crude is considered a high-quality crude oil with a relatively low sulfur content, making it less polluting and easier to refine into various petroleum products, including gasoline and diesel fuel.

Key features of Brent crude oil include:

1. Comes from the North Sea, specifically from four major oil fields: Brent, Forties, Oseberg, and Ekofisk (often referred to as the BFOE complex). These fields are located in the waters between the United Kingdom and Norway.
2. Classified as "sweet" because it has a low sulfur content, typically below 0.5%. Lower sulfur content makes it less environmentally harmful and easier to refine into cleaner fuels.
3. Widely used as a benchmark for pricing crude oil around the world. The price of Brent crude is often referenced in financial markets and serves as a basis for pricing many international crude oil contracts.
4. Changes in the price of Brent crude can have a significant impact on energy markets, including the cost of gasoline and diesel fuel. It is also a key reference point for governments, oil companies, and traders when making decisions related to the energy sector.

The price of Brent oil today is $83.75 per barrel as of May 8, 2024. It records a change of 0.92% if compared to yesterday's price

WTI (West Texas Intermediate) is petroleum produced in North America and in most applications used for gasoline products. The characteristics of WTI oil are lighter and easier to process, so it is in great demand, especially in the US and China.

Here are some key features of WTI crude oil:

1. Primarily produced in the United States, specifically in the Permian Basin in West Texas and parts of New Mexico. It is extracted from land-based oil fields.
2. Considered a high-quality crude oil with a low sulfur content, typically below 0.5%. Like Brent crude, its low sulfur content makes it desirable for refining into various petroleum products, including gasoline and diesel fuel.
3. Serves as a benchmark for pricing crude oil in the United States and is used as a reference point for domestic oil prices. The price of WTI is often quoted in financial markets and is used in the pricing of many oil contracts in North America.
4. The delivery point for WTI crude oil futures contracts is in Cushing, Oklahoma. This location is a major oil storage and distribution hub in the United States, making it a critical point for the physical delivery of WTI crude oil.
5. Can be subject to volatility due to various factors, including changes in supply and demand, geopolitical events, and economic conditions. This volatility can have significant implications for energy markets and the broader economy.
6. Closely watched by traders, investors, and policymakers, as its price movements can impact energy prices, inflation, and the overall economic outlook in the United States.
7. Often compared to Brent crude oil, another major benchmark, to assess global oil market trends and price differentials.

The price of WTI today is $79.22 per barrel as of May 8, 2024. It records a change of 1.07% if compared to yesterday's price

The price of Brent oil has been the basis for price formation since 1971 for nearly 40% of oil worldwide and continues to be used today. However, in its development, the oil production of the United States has increased and contributed greatly to the world market share, so the price of WTI oil has been used as a major reference too since around 2007.

The existence of two main references for oil prices, namely Brent crude and WTI crude, is primarily due to geographical and other market factors. Here are their comparisons:

See also: List of Brokers for Commodity Trading

1. Supply and Demand
   The fundamental principle of supply and demand is a primary driver of oil prices. When global oil demand exceeds supply, prices tend to rise, and when supply outpaces demand, prices tend to fall. Factors influencing supply and demand include economic growth, industrial activity, transportation demand, and energy efficiency.
   
   
2. Geopolitical Events
   Geopolitical instability in major oil-producing regions can lead to supply disruptions and cause oil prices to spike. Conflicts, sanctions, political unrest, and changes in leadership in oil-producing countries can all have significant impacts.
   
   
3. OPEC and OPEC+ Actions
   The Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, have a substantial influence on oil prices. They can adjust production levels and quotas, affecting global oil supply. Decisions made during OPEC+ meetings can lead to price increases or decreases.
   
   
4. Production Levels
   The level of oil production in key oil-producing countries and regions, such as the United States, Saudi Arabia, Russia, and others, directly affects the global supply of oil. Changes in production can have a direct impact on prices.
   
   
5. Technological Advances
   Advancements in drilling and extraction technologies can increase oil production and influence prices. Innovations in shale oil extraction, for example, have significantly impacted global oil markets.
   
   
6. Currency Exchange Rates
   Oil is typically priced in US dollars. Fluctuations in currency exchange rates can affect the purchasing power of countries with other currencies, influencing oil demand. A stronger US dollar can make oil more expensive for buyers in other currencies, potentially reducing demand and prices.
   
   
7. Natural Disasters
   Events like hurricanes, earthquakes, and wildfires can disrupt oil production, refining, and transportation infrastructure, leading to supply shortages and price increases, especially in regions prone to such events.
   
   
8. Energy Transition
   Efforts to transition to renewable energy sources and reduce greenhouse gas emissions can impact long-term oil demand. Policies promoting energy efficiency, electric vehicles, and alternative fuels can affect the growth prospects for oil consumption.
   
   
9. Inventory Levels
   The amount of oil held in storage can impact prices. High inventory levels can indicate an oversupplied market and put downward pressure on prices, while declining inventories may support prices.
   
   
10. Speculative Trading
    Financial speculation in oil futures markets can lead to short-term price volatility. Traders and investors often respond to news and market sentiment, which can lead to price swings.
    
    
11. Global Economic Conditions
    Economic conditions, such as economic growth, inflation, and interest rates, can impact oil demand. A strong economy tends to increase demand for oil, while economic downturns can reduce it.
    
    
12. Regulatory Changes
    Changes in regulations and government policies related to energy production, environmental standards, and carbon emissions can impact the cost of oil production and consumption, influencing prices.

A good broker for oil does not only constitute good regulation, platform, and other general services but is also excellent in offering oil-related products. As such, make sure your broker has these qualities if you aim for oil trading:

1. Provides at least Brent and WTI as CFD products, futures, or spots.
2. Ensures low spreads in oil trading.
3. Offers competitive leverage for oil instruments; make sure that your desired leverage is not limited to Forex CFDs.
4. Presents education materials, analysis, and market tools for commodity and oil trading.