Moore Research Center, Inc.

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Energy Cash & Basis Charts?

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What is the definition for “West Texas Crude”?

WTI is the underlying commodity for both the ICE contract of crude oil and also the NYMEX contract.

Industry commodity calendars show that, for purposes of Last Trading Day, etc., they are listed as "ICE WTI Crude" and "NY Crude Lt."  However, if you go to our Commodity Quotes section on Energy, you will find that contracts for both closed at exactly the same price.  We have always used WTI for our cash price.

However, Brent Crude actually trades at a significant premium over WTI.  For example, whereas January delivery ICE and NYMEX closed at $89.28 on November 19, the ICE Brent Crude for January delivery closed at $111.70 --- a premium of $22.42.

Read more here: http://www.cmegroup.com/trading/energy/light-sweet-crude-oil.html


Last Updated on Monday, 24 June 2024 11:13  
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Newsflash

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Historical research from Moore Research Center, Inc. (MRCI) highlights a seasonal tendency for Treasury prices to rise and yields to fall in July. This pattern holds across the 5-year, 15-year, and 30-year seasonal patterns, implying that the fundamentals during this period have been relatively consistent, driven by market dynamics and investor behavior. July often sees reduced trading volumes due to summer slowdowns, which can amplify price movements in bonds. Investors may rebalance their portfolios in the third quarter, as the end of September marks the Federal government's year-end, which is expected to increase demand for Treasuries.

This seasonal trend offers traders a potential edge. For instance, MRCI data shows the 10-year Treasury note often rallies in July, with prices rising as yields dip. This could be a short-term opportunity for those positioned in Treasury futures or ETFs. However, seasonality is not a guarantee; traders must combine it with other analyses, such as technical indicators or macroeconomic trends, to make informed decisions.