7 Apr 2015
Brent asserts its dominance as favored oil benchmark
FXStreet (Mumbai) - Open positions in Brent crude oil futures rose to a historic high and outnumbered the open positions by the most ever as markets have begun favoring the Brent as a global oil benchmark.
Nymex WTI hurt by excess supply
Traders believe the New York Mercantile Exchange (Nymex) West Texas Intermediate (WTI) no longer represents the global picture since the prices have dipped largely due to record high production and storage levels in the US. The export ban in the US, coupled with shale boom is a unique situation in the US, and thus, resulting price fall does not reflect a truer picture of oil market conditions.
In late 2014, Brent's open interest overtook that of U.S crude futures. Brent's open interest on the Intercontinental Exchange (ICE), or the number of outstanding contracts held by market players, increased to 1.99 million lots as of the end of March. That compared with 1.72 million lots for crude futures on the New York Mercantile Exchange (Nymex).
Nymex WTI hurt by excess supply
Traders believe the New York Mercantile Exchange (Nymex) West Texas Intermediate (WTI) no longer represents the global picture since the prices have dipped largely due to record high production and storage levels in the US. The export ban in the US, coupled with shale boom is a unique situation in the US, and thus, resulting price fall does not reflect a truer picture of oil market conditions.
In late 2014, Brent's open interest overtook that of U.S crude futures. Brent's open interest on the Intercontinental Exchange (ICE), or the number of outstanding contracts held by market players, increased to 1.99 million lots as of the end of March. That compared with 1.72 million lots for crude futures on the New York Mercantile Exchange (Nymex).