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Wti Contract Expiry

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Wti Contract Expiry

The WTI (West Texas Intermediate) contract expiry is an important event that affects the oil markets worldwide. The WTI is the benchmark for crude oil prices in North America and is used as a reference price for crude oil trading in the US futures market.

The WTI contract is a futures contract that allows traders to speculate on the price of crude oil, with the delivery date set for a specific month. The contract expiry occurs on the last trading day of the month, and traders who hold the contract at that time must either sell it or take delivery of the physical product.

The WTI contract expiry can have significant implications for the oil market. If traders are holding a large number of contracts near expiry, they may choose to sell them before the expiry date to avoid the risk of taking physical delivery of the oil. This can lead to increased selling pressure and lower prices.

On the other hand, if there is a shortage of crude oil near the expiry date, traders may be willing to pay a premium to secure the oil and prevent the need for physical delivery. This can drive prices higher.

The most recent WTI contract expiry occurred on February 22, 2021. The market was closely watching this date, as it was the first time since the historic crash in oil prices in April 2020 that the futures contract was set to expire below $60 per barrel.

The WTI contract expiry is closely monitored by traders and investors alike, as it can provide valuable insights into the supply and demand dynamics of the oil market. While it is just one of many factors that influence crude oil prices, it can have a significant impact on short-term price movements.

In conclusion, the WTI contract expiry is an important event that affects the oil markets worldwide. It can provide valuable insights into the supply and demand dynamics of the oil market and can have a significant impact on short-term price movements. As such, it is closely monitored by traders and investors alike.

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