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WTI and Brent futures pricing structure

Author

Listed:
  • Scheitrum, Daniel P.
  • Carter, Colin A.
  • Revoredo-Giha, Cesar

Abstract

WTI and Brent crude oil futures are competing pricing benchmarks and they jockey for the number one position as the leading futures market. The price spread between WTI and Brent is also an important benchmark itself as the spread affects international trade in oil, refiner margins, and the price of refined products globally. In addition, the shapes of the WTI and Brent futures curves reflect supply and demand fundamentals in the U.S. versus the world market, respectively.

Suggested Citation

  • Scheitrum, Daniel P. & Carter, Colin A. & Revoredo-Giha, Cesar, 2018. "WTI and Brent futures pricing structure," Energy Economics, Elsevier, vol. 72(C), pages 462-469.
    • Handle: RePEc:eee:eneeco:v:72:y:2018:i:c:p:462-469
    DOI: 10.1016/j.eneco.2018.04.039
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    References listed on IDEAS

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    More about this item

    Keywords

    Crude oil futures; Commodity storage; WTI; Brent; Competitive storage model;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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