West Texas Intermediate (WTI) is the primary US crude oil benchmark and, alongside Brent Crude and Dubai/Oman, one of the three global oil price anchors. It represents the price of domestically produced US crude delivered to the pipeline hub at Cushing, Oklahoma.
WTI vs Brent — Key Differences
| Factor | WTI | Brent |
|---|---|---|
| Origin | Texas, New Mexico, North Dakota (USA) | North Sea (UK, Norway) |
| API gravity | ~39.6° | ~38° |
| Sulphur content | ~0.24% (sweet) | ~0.37% (sweet) |
| Delivery point | Cushing, Oklahoma (landlocked) | Sullom Voe, Shetland (waterborne) |
| Exchange | CME/NYMEX, New York (CL) | ICE, London (B) |
| Global relevance | Americas primarily | ~65–70% of world trade |
| Typical spread | Usually $2–5/bbl discount to Brent | Usually $2–5/bbl premium to WTI |
WTI Price Drivers
- US oil production — Shale (Permian Basin, Eagle Ford) output drives WTI supply; EIA weekly production data is closely watched
- Cushing inventory levels — EIA reports Cushing storage every Wednesday; builds pressure prices down, draws push them up
- OPEC+ decisions — Production cuts or increases directly move WTI even though it's a US benchmark
- US dollar strength — Oil is priced in USD; a stronger dollar reduces demand from non-US buyers
- US refinery utilisation — High refinery runs draw down crude inventories and support WTI prices
- Pipeline capacity — Cushing's location means pipeline constraints can cause WTI to trade at unusual discounts to coastal crudes
WTI and International Commodity Pricing
While EN590, Jet A-1, and most European petroleum products are priced against Brent rather than WTI, the two benchmarks move in tandem approximately 85–90% of the time. WTI is important to monitor because:
- US crude exports (since 2015 export ban lifted) directly affect global supply and Brent pricing
- NYMEX futures data is released earlier in the trading day than ICE Brent and often leads price direction
- The Brent/WTI spread itself (the "Brent premium") is actively traded and signals global vs US supply dynamics
Frequently Asked Questions
- What is WTI crude oil?
WTI (West Texas Intermediate) is a grade of light sweet crude oil produced primarily in Texas, New Mexico, and North Dakota. It is the benchmark crude for US domestic markets and NYMEX futures pricing. WTI has API gravity of approximately 39.6° and sulphur content of ~0.24%, making it slightly lighter and sweeter than Brent.
- Why is Brent more expensive than WTI?
Brent typically trades at a $2–5/bbl premium to WTI due to Brent's waterborne delivery advantage (easy global export) versus WTI's landlocked Cushing, Oklahoma delivery point. WTI occasionally trades at a premium when US refinery demand is strong or Cushing inventories are low.
- Does WTI affect EN590 prices?
WTI affects EN590 prices indirectly — through its influence on the global crude oil market and Brent pricing. EN590 is priced directly against Brent Crude, not WTI. However, since Brent and WTI move closely together (usually within $2–5/bbl), WTI movements are watched as a leading indicator for all petroleum product prices.
- What exchange is WTI traded on?
WTI crude oil futures are traded on the CME Group's NYMEX (New York Mercantile Exchange) as the CL contract. Options, swaps, and other derivatives are also widely traded over-the-counter (OTC). The main WTI ticker symbol is CL=F (front month futures).