Join Dave Lerman in this special Trader’s Edge installment covering the energy renaissance in the U.S.
On September 12 the Energy Information Administration (EIA) announced that based on currently available estimates of worldwide crude production, the United States recently became the largest producer of crude oil in the world.
Given that a significant amount of oil produced in the U.S. is of the WTI grade (light sweet crude), the ramifications to the producers, users and traders of WTI are significant. See how this could affect WTI trading, including the following points:
As WTI becomes an even greater benchmark, hedgers and speculators are going to pay increasing attention to WTI futures and options across all time zones
U.S. production will no doubt effect the supply and demand equation from crude in an important way, and thus effect its price in the short-, intermediate- and long-term
Spreading WTI versus Brent and other crude products will take on more significance going forward
Peter Knight Advisor