West Texas Intermediate (WTI)
A turning point for crude oil indexes
Battle of the benchmarks
IEA: BP’s oil spill threatens future supply
The International Energy Agency (IEA) expresses major concerns over future oil supply, as new regulations threaten to tighten deepwater drilling, following BP’s Gulf of Mexico oil spill
Asia Risk 15: Commodity derivatives grow dramatically but Asia still not setting prices
Asia is now the largest buyer of raw materials and its companies face significant hedging challenges to manage price volatility. But the fragmented nature of the region’s economies has hampered the exertion of meaningful influence in global commodity…
New US derivatives rules to boost tech firms' energy business
The new US derivatives regulatory regime to raise transparency and reporting requirements for energy traders will present business opportunities for technology companies in the sector
New contract capitalises on Canadian heavy crude growth
A Canadian heavy crude oil contract launched this week will help oil market participants to exploit expected production growth in heavy crude from Canadian oil sands
Singapore's SMX WTI contracts seen struggling against NYMEX and ICE
The Singapore Mercantile Exchange WTI contracts, which offer a WTI contract throughout the Asian time zone, are unlikely to challenge Nymex and ICE, say market players
Global crude benchmark WTI is flawed, according to expert
The global oil industry is increasingly turning away from WTI as a physical price benchmark, says industry consultant
Hybrid structures tempt investors
Volatile and uncertain markets have got investors thinking about diversified exposures to multiple asset classes both as yield generating opportunities and portfolio hedges. Hybrid structures, which blend discrete asset exposures into one pay-off, are…
After the storm
Asian airlines and other heavy users of fuels received a sharp lesson about the risks associated with their hedges after fuel prices peaked in 2008 and then collapsed during a six-month period. How have they moved to improve their risk management…
Oil sands supply weighs on WTI prices
Canadian oil sands could become the top source of US crude oil imports this year, according to a report published on Wednesday (May 19), raising concerns that oversupply of US crude will continue to weigh on prices
Iraq adopts new pricing for US crude
Somo, the Iraqi state-owned oil marketing firm, has followed in the footsteps of Saudi Arabia and Kuwait by adopting the Argus Sour Crude Index (ASCI) to benchmark price sales of US-bound crude from April onwards.
UPDATED: Nymex follows Saudi sour crude endorsement with new contracts
Nymex is to launch two sour crude oil contracts after Saudi Aramco’s announcement this week that it will use the Argus Sour Crude Index (ASCI) as a benchmark for US sales from January 2010.
Saudi Aramco switches to Argus Sour Crude Index
Saudi Arabia’s national oil company Saudi Aramco is to use the Argus Sour Crude Index (ASCI) published by Argus Media as the benchmark price for all grades of crude oil sold to US customers from January 2010.
Making markets
In the first of two articles tracing the beginnings of energy derivatives, Roderick Bruce talks to oil trading pioneers about the market’s formative years
Sovereign hedging lessons
Oil-hedging losses at Sri Lankan state-owned refinery Ceylon Petroleum Corporation are a lesson in the proper use of derivatives. By Joe Marsh
Oil Storage Data - Taking Stock
Volatile prices and perceived problems with WTI as a benchmark have triggered renewed calls for weekly European stock data to supplement US data. An EC directive is currently being discussed, but not everyone is in favour of this, finds Rachel Morison
Measure for measure
Claims that the WTI price benchmark has become ineffective have led some in the oil industry to call for a new US marker for sour crude. Roderick Bruce measures industry reaction and the potential for a global sour crude benchmark
Koch markets first volatility swap
Koch Supply & Trading, a division of energy conglomerate Koch, has marketed the first energy volatility swap in a deal with hedge fund Centaurus, a move the Wichita, Kansas-based oil trader hopes will increase its share in options markets and attract…
Crude oil takes a double hit
Mark Powell of GlobalView Software looks at how crude prices are being affected by the impending war with Iraq and the general strike in Venezuela