Since then, WTI stock has decreased by 25.3% and is now trading at $4.17. W&T Offshore Inc. (WTI) cut its production estimate for the year, citing the effect of production deferrals resulting from multiple third-party pipeline outages, production delays and lower natural gas liquids production. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer.
- Oilprice.com, in cooperation with its partners, offers over 150 crude oil blends and indexes from all around the world, providing users with oil price charts, comparison tools and smart analytical features.
- In response, his deputy prime minister cited proposals to restrict exports of oil products purchased for domestic use.
- Both, however, are considered high-quality oils and are therefore the two most important oil benchmarks in the world.
- Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes.
In September, OPEC+ kingpin Saudi Arabia extended its 1 million barrel per day voluntary crude oil production cut until the end of the year. The global oil markets are looking at a «pretty robust deficit» on top of an already significant shortfall this quarter, Malek said, citing the oil production cuts implemented by OPEC and its allies. U.S. crude oil exports more than tripled in June 2018 compared to one year ago, to average 2.4 million b/d. The growth in exports has been transformative for the U.S. crude oil market.
Tracy W. Krohn has an approval rating of 55% among the company’s employees. This puts Tracy W. Krohn in the bottom 25% of approval ratings compared to other CEOs of publicly-traded companies. 52.0% of employees surveyed would recommend working at W&T Offshore to a friend. «Overall, we believe that OPEC will be able to sustain Brent in an $80 to $105 range in 2024,» the Goldman report added, citing strong demand growth from the Asia region. «Today’s price action seems to be Cushing driven, as it reaches a 22 million bbl low, the lowest level since July 2022,» Bart Melek, managing director of TD Securities, told CNBC. No part of any data presented on this website may be re-published, re-displayed or otherwise re-distributed without the prior written consent of Oilprice.com.
WTI is the underlying commodity of the New York Mercantile Exchange’s (NYMEX) oil futures contract and is considered a high-quality oil that is easily refined. Upgrade how to buy luna on kucoin to MarketBeat All Access to add more stocks to your watchlist. 15 employees have rated W&T Offshore Chief Executive Officer Tracy W. Krohn on Glassdoor.com.
Figure 4: Shell Zydeco (Ho-Ho) pipeline
The consensus among Wall Street analysts is that investors should «buy» WTI shares. According to one analyst, the rating for WTI stock is «Strong Buy» and the 12-month stock price forecast is $8.3. There is nothing more exciting than finding a stock that has been mispriced by the market. Shares of this relatively small offshore oil driller rose dramatically, largely thanks to earnings. The offshore oil producer is under some pressure after reporting its fourth-quarter results. It will not be in OPEC’s interest if prices go a lot higher to triple digits, as they will be worried about long term demand destruction, Malek pointed out.
«Until a decision to raise production is made, the global energy market will remain tight,» Ole Hansen, Head of Commodity Strategy at Saxo Bank, said. Stockpiles at Cushing have been falling closer to historic low levels due to strong refining and export demand, prompting concerns about quality of the remaining oil at the hub and whether it will fall below minimum operating levels. Since the shale boom in the U.S., which resulted in a production increase of WTI, the price of WTI has gone down and usually trades at a discount to Brent. Furthermore, transporting WTI overseas to Brent crude’s market could come at a cost that would make WTI unable to compete with Brent crude in terms of pricing. Google Finance is currently unavailable as some international data providers no longer support your region. 1 Wall Street analysts have issued «buy,» «hold,» and «sell» ratings for W&T Offshore in the last twelve months.
- The Argus assessment for WTI Houston crude oil is based on delivery at the Magellan terminal in East Houston, which is a key hub for delivery of WTI-type crude oil.
- Based on feedback from industry sources, the recent pipeline flows of WTI-type crude oil inbound to Houston is in the range of 3.0 million barrels per day (b/d).
- The global oil markets are looking at a «pretty robust deficit» on top of an already significant shortfall this quarter, Malek said, citing the oil production cuts implemented by OPEC and its allies.
Crude oil can be refined into a variety of forms such as petroleum naphtha, gasoline, diesel fuel, asphalt base, heating oil, kerosene, liquefied petroleum gas, jet fuel and fuel oils, which expand the market pool and increase demand. Trading can be done either by speculating on its market price, or exchanging the physical commodity. Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world’s media organizations, industry events and directly to consumers.
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The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Forecasts for $100 per barrel oil have been swirling on the horizon in recent days. Goldman Sachs recently raised its 12-month Brent forecast from $93 per barrel to $100 on the back of «modestly sharper inventory draws,» the investment bank wrote in a recent note dated September 20. «OPEC+ production cuts, including the voluntary extra cut by Saudi Arabia, are bearing fruit, lowering oil inventories and supporting prices,» UBS wrote in a note dated September 28. Additionally, Russia has pledged to extend its 300,000 barrels per day export reduction until the end of December. Potentially adding to supply tightness, Russian President Vladimir Putin ordered his government to ensure retail fuel prices stabilise after a jump caused by an increase in exports.
Oil Price (WTI/Brent)
W&T Offshore Inc.’s WTI board approved a special dividend of 63 cents a share, marking the second consecutive year the independent oil and natural gas company is making the special payment. The offshore oil and gas producer battled several issues during the first quarter. TD Securities’ Malek also highlighted how refinery throughputs will see a decline in the coming months as refinery maintenance season approaches. The refinery crude throughput refers to the volume of crude oil a refinery can produce during a given period of time. The Federal Reserve Bank of Dallas released a survey showing oil and gas activity in three key energy producing U.S. states has been rising with the latest jump in energy prices. According to Argus, the Mars oil stream is a light sour crude oil with quality parameters of 28 degrees API gravity maximum and 1.93% sulfur maximum.
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The materials provided on this Web site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice. «The market is overbought and a correction is definitely needed,» said Dennis Kissler, senior vice president of trading at BOK Financial. All market data (will open in new tab) is provided by Barchart Solutions.
W&T Offshore declares special dividend
Energy prices surged after crude stocks at a key storage hub fell to their lowest since July last year. Crude inventories in Cushing, Oklahoma fell to 22 million barrels in the fourth week of September — hovering close to the operational minimum, according to data from the U.S. Brent crude oil is one of the most popular oil benchmarks in the world, it’s recovered from the North Sea. Brent makes such a good benchmark because it is easy to refine into products such as diesel, gasoline, petrol, and other end products, which are in a great and consistent demand. As the world’s leading derivatives marketplace, CME Group is where the world comes to manage risk.
In addition, as discussed above, Marathon Pipe Line LLC has begun work on the reversal of the Capline system. Previously, Mars flowed northbound to Midwest refineries via Capline, but the pipeline flows edge in trading have been terminated. After the reversal is complete, the Capline will provide southbound access to Bakken and heavy Canadian crude oil to flow to the Gulf Coast in direct competition with Mars.
W&T Offshore, Inc. engages in the production, exploration, development, and acquisition of oil and natural gas properties. The company was founded by Tracy W. Krohn in 1983 and is headquartered in Houston, TX. The Mars Pipeline System1,2 originates approximately 130 miles offshore in the Deepwater Mississippi Canyon and terminates in salt dome caverns in Clovelly, whats forex trading Louisiana as shown in Figure 6. Second, the LOOP facility has completed work to load export vessels from its deep-water port that will allow for loading of LLS onto VLCC vessels with capacity of 2 to 4 million barrels. This will provide access for LLS to be exported to the global marketplace, and provide new arbitrage opportunities for the LLS benchmark.
These are standardized products used to determine the prices for all other types. The reference oil traded most frequently and of major significance for the USA is West Texas Intermediate (WTI), while the most important in Asia is Dubai Fateh. Other reference oil types include Leona, Tijuana, Alaska North Slope, Zueitina or Urals. There is direct pipeline connectivity from Houston to St. James via the Shell Zydeco Pipeline (also called the Ho-Ho Pipeline) with capacity of 375,000 barrels per day as shown in 4 below. In addition, light sweet crude oil is delivered by barge from Houston and Corpus Christi to the terminals in St. James for blending into the LLS stream.