West Texas Intermediate WTI: Definition and Use as a Benchmark
Other reference oil types include Leona, Tijuana, Alaska North Slope, Zueitina or Urals. Besides its primary role as the most important energy source, crude oil is also an essential raw material for manufacturing plastics. Because the supply of crude oil is limited but demand is constantly growing, the price of oil is also continuously rising.
- For the purposes of trading on futures exchanges in London or New York, however, reference oils are used.
- WTI is not the most commonly used benchmark globally, that honor goes to Brent, where two-thirds of oil contracts globally use Brent as a benchmark.
- WTI is the main oil benchmark for North America as it is sourced from the United States, primarily from the Permian Basin.
- Furthermore, transporting WTI overseas to Brent crude’s market could come at a cost that would make WTI unable to compete with Brent crude in terms of pricing.
- The significance of a benchmark in the oil market is that benchmarks serve as a reference price for buyers and sellers of crude oil.
Because crude oil is needed to manufacture other primary materials, it is the world’s most important commodity. The US investment bank Goldman Sachs estimates the proportion of crude oil used for primary materials production to be 45 percent. Crude oil is by far the world’s most important energy source and the price of oil therefore plays an important role in industrial and economic development.
WTI Analyst Ratings By Month
1 analysts have issued 1 year price objectives for W&T Offshore’s shares. Their WTI share price targets range from $7.90 to $7.90. On average, they predict the company’s stock price to reach $7.90 https://www.dowjonesanalysis.com/ in the next twelve months. This suggests a possible upside of 198.1% from the stock’s current price. View analysts price targets for WTI or view top-rated stocks among Wall Street analysts.
The ex-dividend date of this dividend is Monday, November 27th. The company is scheduled to release its next quarterly earnings announcement on Tuesday, May 14th 2024. W&T Offshore’s stock was trading at $3.26 at the start of the year.
W&T Offshore, Inc. was founded in 1983 and is headquartered in Houston, Texas. On an international level there are a number of different types of crude oil, each of which have different properties and prices. The different types of crude oil come from regions as diverse as Alaska North Lope, Arab Light or Zueitina in Libya. For the purposes of trading on futures exchanges in London or New York, however, reference oils are used. These are standardized products used to determine the prices for all other types. The reference oil traded most frequently and of major significance for the USA is West Texas Intermediate (WTI), while the most important in Asia is Dubai Fateh.
As of January 31st, there was short interest totaling 19,170,000 shares, an increase of 9.9% from the January 15th total of 17,450,000 shares. Based on an average daily volume of 2,830,000 shares, the days-to-cover ratio is currently 6.8 days. Currently, 19.8% of the shares of the company are short sold.
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Sign-up to receive the latest news and ratings for W&T Offshore and its competitors with MarketBeat’s FREE daily newsletter. The Cushing hub delivery system consists of 35 (20 inbound and 15 outbound) pipelines and 16 storage terminals. The hub has 90 million https://www.investorynews.com/ barrels of storage capacity and accounts for 13% of U.S. oil storage. The inbound and outbound capacity is 6.5 million barrels a day. Cushing is known as “The Pipeline Crossroads of the World.” You have already added five stocks to your watchlist.
West Texas Intermediate (WTI) crude oil is a specific grade of crude oil and one of the main three benchmarks in oil pricing, along with Brent and Dubai Crude. WTI is known as a light sweet oil because it contains less than 0.50% sulfur (normally about 0.24% to 0.34%), making it “sweet,” and has a low https://www.topforexnews.org/ density making it “light.” W&T Offshore’s stock is owned by many different institutional and retail investors. Insiders that own company stock include B Frank Stanley, Shahid Ghauri and Virginia Boulet. 15 employees have rated W&T Offshore Chief Executive Officer Tracy W. Krohn on Glassdoor.com.
Though Brent crude and WTI crude are the most popular benchmarks, their prices are often contrasted. The difference in price between Brent and WTI is called the Brent-WTI spread. W&T Offshore saw a increase in short interest in the month of January.
Price Target and Rating
1 Wall Street research analysts have issued “buy,” “hold,” and “sell” ratings for W&T Offshore in the last twelve months. The consensus among Wall Street research analysts is that investors should “buy” WTI shares. W&T Offshore, Inc., an independent oil and natural gas producer, engages in the acquisition, exploration, and development of oil and natural gas properties in the Gulf of Mexico. The company sells crude oil, natural gas liquids, and natural gas.
Since then, WTI shares have decreased by 18.7% and is now trading at $2.65. In December 2005 the global demand for crude oil was 83.3 million barrels per day according to the International Energy Agency (IEA) and will rise further. According to one analyst, the rating for WTI stock is “Strong Buy” and the 12-month stock price forecast is $7.9. WTI is the main oil benchmark for North America as it is sourced from the United States, primarily from the Permian Basin. It then travels through pipelines where it is refined in the Midwest and the Gulf of Mexico.
According to the issued ratings of 1 analysts in the last year, the consensus rating for W&T Offshore stock is Buy based on the current 1 buy rating for WTI. The average twelve-month price prediction for W&T Offshore is $7.90 with a high price target of $7.90 and a low price target of $7.90. Since the shale boom in the U.S., which resulted in a production increase of WTI, the price of WTI has gone down and usually trades at a discount to Brent. Brent is also tied to more worldwide oil markets and serves as an international benchmark, meaning that more factors are influencing its price. Furthermore, transporting WTI overseas to Brent crude’s market could come at a cost that would make WTI unable to compete with Brent crude in terms of pricing. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.
Tracy W. Krohn has an approval rating of 55% among the company’s employees. This puts Tracy W. Krohn in the bottom 25% of approval ratings compared to other CEOs of publicly-traded companies. 52.0% of employees surveyed would recommend working at W&T Offshore to a friend. W&T Offshore declared a quarterly dividend on Wednesday, November 8th. Stockholders of record on Tuesday, November 28th will be paid a dividend of $0.01 per share on Friday, December 22nd. This represents a $0.04 dividend on an annualized basis and a yield of 1.51%.
The main delivery point for physical exchange and price settlement for WTI is Cushing, Oklahoma. According to analysts, W&T Offshore’s stock has a predicted upside of 172.41% based on their 12-month stock forecasts. Sign-up to receive the latest news and ratings for WTI and its competitors with MarketBeat’s FREE daily newsletter. The most oversold stocks in the energy sector presents an opportunity to buy into undervalued companies.
The most important type of crude oil used in Europe is Brent Crude, named after the North Sea oilfield where it is extracted. Brent Crude is a particularly light crude oil which is carried from the North Sea to the Sullom Voe Terminal on Mainland, Shetland by an underwater pipeline. From there, the crude oil is transported by tanker. The significance of a benchmark in the oil market is that benchmarks serve as a reference price for buyers and sellers of crude oil. Oil benchmarks are frequently quoted in the media as the price of oil.
WTI is not the most commonly used benchmark globally, that honor goes to Brent, where two-thirds of oil contracts globally use Brent as a benchmark. Both, however, are considered high-quality oils and are therefore the two most important oil benchmarks in the world. As mentioned, WTI has a sulfur content between 0.24% and 0.34%, whereas Brent has a sulfur content between 0.35% to 0.40%. The lower the sulfur content of an oil, the easier it is to refine, making it more attractive. Both benchmark oils are considered sweet, but WTI is sweeter making it a bit easier to refine.