Brent and WTI have become closer: Texas oil exports are blackmailing the market

Brent and WTI have become closer: Texas oil exports are blackmailing the marketWTI Midland is actively going on sale and putting more pressure on pricing. The new variety breaks prices in Europe and Asia: against the backdrop of production cuts and sanctions against oil from Russia, WTI Midland exports become the main incentive for increasing supply in the market.Recall that the Brent variety has been holding the position of the main price target for oil trading for many years. American WTI has long been considered as one of the contenders for inclusion in Brent along with oil from the Norwegian Johan Sverdrup field. It has similar chemical characteristics and is widely available in Europe, but comes with a long transport arm.In 2022, after Russian oil left the EU, the role of the American WTI has grown so much that without it, Brent would no longer be representative. In early May, S&P Global Commodity Insights and Platts added WTI to the basket, making the Brent benchmark truly global.WTI Midland has come to dominate export volumes, triggering price caps on oil from Europe, Africa, Brazil and Asia, which are below the benchmark.In 2023, the US exported 4.08 million b/d to the market, offsetting Saudi Arabia's production cuts. This signals an increase in the importance of American oil in the world market. In the situation with restrictions on oil from Russia, supplies from the United States are strengthening their role in balancing the market.WTI Midland is freely traded with no restrictions on destination and production. Other grades of oil are feeling strong pressure from US exports and producers are forced to cut prices to compete with WTI Midland. There is a good discount on WTI relative to Dubai, and expensive oil from Saudi Arabia makes the Texas counterpart attractive.So you can fight in the oil market not only with money but also with more cunning methods.Profits to yall!#ForexChief #wti #brent #forexnews #stocks #worldnews #Market