I've been blogging on the Bakken since 2007; this iteration began in 2009/2010. Periodically I have posted notes about the relationship between WTI and Brent.
Marcellus.com is reporting a nice summary:
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.
For a long time, Nymex’s West Texas Intermediate (WTI) futures had
been the leading benchmark, given the United States’ position as the
world’s biggest consumer, importer and trader of crude oil. That changed
this decade with the shale boom, which turned the U.S. into one of the
world’s top producers and reduced its need to import. At the same time, a
U.S. ban on exporting crude has meant the country’s oil is trapped in
storage tanks at home. That has pulled WTI prices down to levels that do
not reflect global markets and diminished its hedging allure for
traders.
In late 2014, Brent’s open interest overtook that of U.S crude
futures. In the same year, Brent’s weighting in several commodities
indexes increased at the expense of WTI. WTI had
been popular with financial players, but this seems to be also changing
with more hedge funds likely turning to Brent.
This is a great little summary to help newbies understand the relationship between WTI and Brent.
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