Blockchain oracle network Pyth has unveiled what it calls the first continuously updated composite index for crude oil, designed to fill in the price gaps left by traditional commodity markets that operate on fixed trading schedules.
The Pyth 24/7 Oil Index collects both on- and off-chain data, sourced from institutional trading desks and exchanges during regular hours and from decentralized derivatives venues during nights, weekends and holidays. The goal is to eliminate outdated reference prices during periods when older benchmarks such as NYMEX WTI futures are no longer updated.
The launch comes amid extreme volatility in global energy markets. Joint US-Israeli airstrikes on Iran and subsequent Iranian retaliation caused immediate increases in oil and gas prices and increased volatility in financial markets.
The suspension of tanker traffic through the Strait of Hormuz and attacks on the region’s oil infrastructure have had significant impacts on global supply chains. Roughly 20% of the world’s oil passes through the Strait, making any disruption there a systemic risk to global energy prices.
Pyth noted that trade in raw materials through the chain has increased enormously during the crisis. Hyperliquid alone handled more than $1 billion in daily WTI oil volume during recent volatility spikes – activity that occurred largely outside traditional market windows.
Pyth’s oracle model, in which institutional trading firms and market makers publish first-party price data directly to the network, gives it a combined view of liquidity on both traditional and decentralized platforms.
The oil index is the first in a planned series of proprietary, always-on indices spanning commodity, macro and asset classes.