WTI

Oil & Gas

Brokers limit investors’ oil bets

24/04/2020

At least three brokerages are restricting the ability of clients to enter into new trades in the most active oil benchmarks in a bid to curb losses after an unprecedented meltdown in crude this week dragged prices into negative territory for the first time in history.

Oil & Gas

Oil’s wild ride cuts ETF investors loose

22/04/2020

For investors getting crushed by oil’s relentless drop, contortions in the exchange-traded fund they swarmed into are adding mind-numbing complexity to an already anxious situation.

Opinion

Turning negative oil positive

22/04/2020

Unprecedented, unbelievable, ‘off-the-scale’ can’t really sum up what happened to oil prices in North America on Monday April 20. Both WTI (West Texas intermediate) and WCS (Western Canadian Select) plunged to below $0 per barrel and recorded an oil price of minus $38 per barrel for the first time in history. Although there has been talk about negative oil prices for months, nobody really predicted anything on this scale.

Oil & Gas

Backwardation and contango: Demystifying market structure

22/04/2020

As the oil market collapse has taken WTI into the uncharted and “impossible” territory of negative prices, there has been considerable attention not only on where prices might be going, but also what is happening to the forward curve, and what it means. Even in more normal markets, the structure of the forward curve “backwardation” and “contango” is a source of confusion – mystery even.