WTI crude oil, namely West Texas light crude oil, is a common crude oil in North America. WTI crude oil futures contract is the flagship futures trading product of the New York Mercantile Exchange (NYMEX), and its price has become the benchmark of crude oil pricing in North America and the United States. WTI crude oil futures is also one of the most market-oriented crude oil futures in the international market.
What is a crude oil ETF? Introduction and development of crude oil ETF?
As one of the most important energy sources in the world, crude oil occupies an important position in the international commodity market. Overseas markets mainly invest in commodity or crude oil markets through commodity swaps, commodity funds and related ETFs (transactional open-end funds) and corresponding stocks and bonds. Crude oil futures are characterized by continuous prices, convenient trading and strong representativeness. WTI crude oil futures in the New York Mercantile Exchange and Brent crude oil futures in Intercontinental Exchange are the two most important crude oil price benchmarks in the world. Compared with crude oil futures, the development history of crude oil ETF is relatively short.
Birth time and activity content
The world's first crude oil futures ETF was born in 2005. At that time, the world economy recovered strongly, the global demand for crude oil increased sharply, the prices of primary products such as agricultural products accelerated, and the international crude oil price exceeded $60/barrel for the first time. Since then, the global economy has always been under the pressure of high oil prices. Investors hope to have a convenient and low-cost way to invest in crude oil assets. It is in this context that the world's first crude oil ETF came into being.