Pyth, the blockchain oracle network, has introduced the world’s first continuously updating crude oil composite index. This innovative index aims to address the pricing gaps left by traditional commodity markets that operate on fixed trading schedules.
The Pyth 24/7 Oil Index combines onchain and offchain data from institutional trading desks and exchanges during regular hours, as well as from decentralized derivatives venues during nights, weekends, and holidays. The primary objective is to eliminate outdated reference prices when legacy benchmarks like NYMEX WTI futures cease updating.
This launch comes at a time of intense volatility in global energy markets. Recent joint U.S.-Israeli airstrikes on Iran and subsequent Iranian retaliation have led to immediate spikes in oil and gas prices, escalating volatility in financial markets.
The disruption of tanker traffic through the Strait of Hormuz and attacks on the region’s oil infrastructure have had a significant impact on global supply chains. Approximately 20% of the world’s oil passes through the Strait, posing a systemic risk for global energy pricing in the event of any disruption.
Pyth has observed a surge in onchain commodity trading during this crisis. Notably, Hyperliquid processed over $1 billion in daily WTI oil perpetual volume during recent volatility spikes, primarily outside traditional market hours.
Pyth’s oracle model, where institutional trading firms and market makers directly publish first-party pricing data to the network, enables a comprehensive view of liquidity across both traditional and decentralized venues.
The oil index is just the first in a series of planned always-on indices covering commodity, macro, and cross-asset categories.