Betty Liu Explains: Why Oil Prices Went Negative | WTI vs Brent Crude | Money In :60 | GZERO Media
Betty Liu, Executive Vice Chairman for NYSE Group, explains:
Why did oil prices go negative last week?
That was really quite a day on Monday. So, you saw WTI crude go into negative price territory. As you can imagine, the demand for oil has dropped dramatically. We're not driving as many cars. We're not flying as many airplanes. And so, that decline in demand means that oil is piling up in storage. That price drop also was likely exacerbated by an expiring futures contract and it basically capped off three straight weeks of losses in oil.
What is the difference between WTI and Brent crude?
That is a common question. Those are the two most popularly traded grades of oil. Brent stands for Brent North Sea Crude and WTI stands for West Texas Intermediate. And it basically just tells you where that oil is coming from. So, the Brent is produced in the North Sea and it serves as the oil benchmark for Middle East, Africa and European oil. WTI is the oil benchmark for North American crude. Now, there's been commentary around the fact that Brent seems to be less susceptible to some of these storage issues you've been hearing about. It's a waterborne contract, whereas WTI is landlocked. So, there's a finite amount of storage and it's much more difficult to get that oil in and out of the region.
Subscribe to GZERO on YouTube: http://bit.ly/2TxCVnY
For more GZERO news and videos: https://www.gzeromedia.com/
Subscribe to the GZERO podcast: https://podcasts.apple.com/us/podcast...
Like GZERO on Facebook: / gzeromedia
Follow GZERO on Twitter: / gzeromedia
Follow GZERO on LinkedIn: / 18385722
GZERO Media is a multimedia publisher providing news, insights and commentary on the events shaping our world. Our properties include GZERO World with Ian Bremmer, our newsletter Signal, Puppet Regime, the GZERO World Podcast, In 60 Seconds and GZEROMedia.com
#In60Seconds #OilPrices #OilMarkets #WTI #BrentCrude