WTI Crude Oil

Over its last 20 sessions WTI has moved 2.83% on a typical day, making it livelier than most of the commodities Kinzan tracks (their median is 2.16%).

At +0.3σ, the last 24 hours have been an entirely ordinary session for WTI.

It sits around the middle of its 24-hour range of 88.94–91.31, measured on hourly closes.

The New York block (13:00–22:00 UTC) did most of the work — roughly 65% of the movement over the last 24 hours.

Over the last 60 sessions of daily returns, it has moved most closely with BRENT (+0.92, a very strong relationship), and most inversely to DJI (−0.60).

Market read: WTI Crude is struggling to maintain momentum, with New York session selling dampening the outlook.

What it is

West Texas Intermediate is a light, low-sulphur crude oil produced mainly in the United States. The benchmark contract is NYMEX light sweet crude, quoted in US dollars per barrel, with each contract representing 1,000 barrels and physical delivery at Cushing, Oklahoma — a pipeline and storage hub in the middle of the country. Because it is landlocked at its delivery point, WTI’s price reflects conditions in the US midcontinent as much as the global seaborne market.

What drives it

Global supply and demand set the broad level, and OPEC+ output decisions are among the most closely watched events. Specific to WTI, though, is the US domestic balance. The growth of shale production turned the United States into the world’s largest crude producer, and the drilling rig count is a closely followed indicator. Every Wednesday the Energy Information Administration publishes inventory figures, including stocks at Cushing; unexpected builds or draws frequently move the price within minutes. Refinery runs, the summer driving season, hurricanes in the Gulf of Mexico and changes to the Strategic Petroleum Reserve all feed in. Storage matters acutely at expiry: in April 2020, with Cushing close to full, the expiring May contract settled below zero for the first time.

How it trades through the day

WTI futures trade nearly 24 hours on CME Globex, Sunday evening to Friday afternoon US time. In the Asia block (22:00–07:00 UTC) volume is light and moves often follow geopolitical headlines. The London block (07:00–13:00 UTC) adds liquidity as European traders and the Brent market engage. The New York block (13:00–22:00 UTC) is where WTI is most active, anchored by the floor settlement window at 14:30 New York time and the weekly inventory report.

What it tends to move with

WTI tends to move closely with Brent crude, with the spread between them reflecting US export capacity and transport costs. It has historically moved inversely to USD/CAD, as oil supports the Canadian dollar. Energy-heavy equity sectors tend to track it, while its tie to the S&P 500 depends on whether oil moves are driven by demand or by supply shocks.