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WHAT IT IS – HOW IT WORKS – WHY?
UPDATE: Hits $90 dollars/barrel
By Staff Reporters
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What it is: Exactly what it sounds like. The North American crude oil benchmark, known as West Texas Intermediate (WTI), is one of three main oil benchmarks used around the globe. While WTI is sourced primarily from Texas, it’s considered one of the highest-quality oils and is often refined into gasoline.
How it works: WTI is the physical commodity behind oil futures contracts traded on the New York Mercantile Exchange. Oil futures = financial instruments that allow investors to buy “abstract oil.” When the futures contract expires, that investment is converted into IRL oil, cashed out, or rolled into a future futures contract.
Why it matters: Oil prices are affected by economic conditions, supply and demand, and geopolitical forces. The coronavirus pandemic caused a historic collapse in prices this spring, and while prices have stabilized, the outlook is shaky.
CITE: https://www.r2library.com/Resource/Title/082610254
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Filed under: "Ask-an-Advisor", Investing | Tagged: commodities, Investing, New York Mercantile Exchange, oil, West Texas Intermediate, WTI | 1 Comment »
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