January 25, 2013
Move Over WTI. Brent Is the New Oil King
Blake Clayton, Council on Foreign Relations
West Texas Intermediate (WTI) and Brent have been locked in a multi-year wrestling match for the exalted status of the definitive world benchmark price of oil. WTI’s glaring deficiencies as a barometer of supply-demand fundamentals in the global crude market, owing to an oversupply of oil at its land-locked pricing hub of Cushing, Oklahoma, have been plain for several years now. But a close look at recent futures trading volumes shows that Brent has steadily surpassed its rival as traders’ preferred...
TAGGED: Cushing Oklahoma, Brent crude, West Texas Intermediate