What is WTI crude oil?

WTI (West Texas Intermediate) is a light, sweet crude oil produced primarily in the Permian Basin and other US shale plays, and the underlying commodity for NYMEX crude oil futures — the most actively traded oil futures contract in the world. WTI has an API gravity of approximately 39.6° (light) and sulphur content of ~0.24% (sweet), making it a high-quality, high-yield crude for producing petrol and diesel. Futures are physically settled at Cushing, Oklahoma, the hub of the US pipeline network, where WTI crude can be stored and transferred.

What is the difference between WTI and Brent crude?

WTI and Brent are both light sweet crude benchmarks, but with key differences: WTI is a US domestic benchmark settled at Cushing, Oklahoma, while Brent is a seaborne benchmark based on North Sea crude (and assessed by Platts as 'Dated Brent' for physical cargoes). Brent typically trades at a $1–5/bbl premium to WTI, reflecting Brent's direct access to global seaborne markets vs WTI's landlocked delivery point. WTI is the primary benchmark for US domestic pricing; Brent is the dominant global export benchmark, pricing approximately 70–75% of the world's internationally traded crude.

How does WTI price affect US gas prices?

WTI price is the primary input cost for US Gulf Coast and Midwest refineries processing domestic crude. A $10/bbl increase in WTI typically translates to roughly 6–8 US cents per gallon (~1.6–2.1 cents/litre) at the pump, with a lag of 2–6 weeks for refinery and wholesale chain transmission. The US pump price is WTI-linked because US refineries predominantly buy WTI and WTI-linked grades. In contrast, European pump prices are more closely linked to Brent crude via Dated Brent-assessed refined product spot prices (Rotterdam ARA for diesel and petrol).

WTI Crude Oil (West Texas Intermediate)

The primary North American crude oil benchmark: a light sweet crude settled at Cushing, Oklahoma, underlying the world's most traded oil futures contract.

Definition

West Texas Intermediate (WTI) is a grade of light, sweet crude oil produced primarily in the Permian Basin of Texas and New Mexico and other US shale basins. It is the underlying commodity for the NYMEX WTI crude oil futures contract (ticker: CL), the world's most actively traded commodity derivatives contract by open interest.

WTI sets the benchmark price for crude oil in North American markets and is one of the three primary global benchmarks alongside Brent crude and Dubai/Oman. All prices are quoted in US dollars per barrel.

WTI specifications

Specification	WTI	Brent blend	Dubai/Oman
API gravity	~39.6° (light)	~38.3° (light)	~31° (medium)
Sulphur content	~0.24% (sweet)	~0.37% (sweet)	~2.0% (sour)
Classification	Light sweet	Light sweet	Medium sour
Delivery point	Cushing, Oklahoma (landlocked)	North Sea / seaborne	FOB Fujairah/Oman
Primary pricing role	North America domestic	Global export benchmark (~75% of world trade)	Middle East / Asia

WTI's higher API gravity and lower sulphur make it slightly easier to refine than Brent, yielding marginally more light products (petrol, jet fuel) per barrel. For the sweet/sour distinction in depth, see our entry on sweet crude.

Cushing, Oklahoma: the delivery point

NYMEX WTI futures are physically settled at Cushing, Oklahoma — a landlocked town at the heart of the US crude pipeline network. Cushing has approximately 90 million barrels of storage capacity, connecting pipelines from the Permian Basin, Eagle Ford, Bakken, Canadian oil sands, and Gulf Coast. It is sometimes called the "Pipeline Crossroads of the World."

The landlocked Cushing delivery point creates an important market dynamic: when US crude production surges and pipeline capacity is constrained, crude accumulates at Cushing and WTI prices can fall sharply below Brent — sometimes dramatically. This occurred most notably in April 2020 when WTI briefly traded at negative prices (−$37.63/bbl) as storage capacity became exhausted during the COVID demand collapse. It was a physical storage market dislocation, not a permanent price signal.

WTI vs Brent: the spread and what drives it

Historically, WTI traded at a slight premium to Brent because of its higher quality. From 2010 to 2016, the US shale boom created Cushing storage congestion and WTI traded at a significant discount to Brent — reaching −$27/bbl in 2011. After the US crude export ban was lifted in December 2015, US crude exports began competing globally, and the WTI-Brent spread normalised to a more typical $1–5/bbl range.

Period	WTI vs Brent spread	Key driver
Pre-2010 historical norm	WTI slight premium (+$1–2)	Quality premium
2011–2015	WTI deep discount (−$10 to −$27)	US shale boom; export ban; Cushing congestion
2016–2019	WTI near parity to slight discount (−$2 to −$5)	US export ban lifted; pipeline buildout
2020–present	Typically WTI discount of $1–5	Normal structural transport cost differential

The current $1–5/bbl WTI discount reflects the logistical cost of moving US crude to export terminals at the Gulf Coast vs Brent's inherent seaborne access. For Brent benchmark mechanics, see our Brent crude glossary entry.

Brent vs WTI: what the spread means for global fuel prices

The Brent vs WTI spread — the price difference between the two main crude benchmarks — reflects the structural cost of moving US-produced crude to global export markets versus Brent's inherent seaborne access. The U.S. EIA daily spot prices track both benchmarks, and the IEA Oil Market Report analyses the spread in the context of global supply-demand balances. When the spread widens (Brent higher), it signals tighter global supply or US pipeline congestion; when it narrows, US exports are flowing freely.

For consumers, the distinction determines which benchmark drives your local pump price. American petrol prices track WTI because US refineries predominantly buy domestic and WTI-linked grades. European and Asian fuel prices track Brent via the Rotterdam and Singapore wholesale markets respectively. The OPEC Reference Basket offers a third perspective — a weighted average of member country crudes. See the Brent crude glossary entry for the European benchmark side of this comparison.

US shale and the WTI price story

The US shale revolution — enabled by horizontal drilling and hydraulic fracturing — transformed WTI from a benchmark for a relatively static conventional oil industry into the price signal for a highly responsive swing producer. US shale output has risen from ~5 mb/d in 2010 to over 13 mb/d in 2025–2026, making the US the world's largest crude producer.

Shale's short cycle times (wells produce in 2–3 months vs years for conventional projects) mean US production responds to WTI price signals faster than any other supply source. This creates a natural price ceiling: when WTI rises above the shale breakeven ($45–65/bbl for most Permian producers), US rigs are added and supply increases, capping the rally. For the 2025 price cycle context, see our analysis of the 2025 oil price decline.

WTI and US gasoline prices

US gasoline (petrol) pump prices are more directly linked to WTI than to Brent because US Gulf Coast and Midwest refineries predominantly purchase WTI and WTI-linked domestic grades. The NYMEX RBOB gasoline futures price (reformulated blendstock) tracks WTI closely, with a crack spread of typically $10–25/bbl representing refining margin.

A $10/bbl WTI change translates to approximately 6–8 cents per gallon at the pump (2–3 cents/litre). The transmission takes 2–6 weeks through the refinery, wholesale, and retail chain. For detailed US pump price dynamics, see our US petrol prices 2026 analysis. For how crude-to-pump transmission works globally, see our guide on oil price to pump price lag.

For the spot price markets that connect WTI to product prices, see our entry on spot price. For futures contracts in depth, see our futures contract glossary entry.

Frequently asked questions

What is WTI crude oil? WTI (West Texas Intermediate) is a light sweet crude oil (API 39.6°, sulphur ~0.24%) produced primarily in the US Permian Basin. It is the underlying commodity for NYMEX crude oil futures — the world's most traded oil contract — and the primary North American crude benchmark. Futures settle physically at Cushing, Oklahoma. WTI prices directly influence US gasoline and diesel pump prices.: WTI (West Texas Intermediate) is a light sweet crude oil (API 39.6°, sulphur ~0.24%) produced primarily in the US Permian Basin. It is the underlying commodity for NYMEX crude oil futures — the world's most traded oil contract — and the primary North American crude benchmark. Futures settle physically at Cushing, Oklahoma. WTI prices directly influence US gasoline and diesel pump prices.
What is the difference between WTI and Brent crude? Both are light sweet benchmarks, but WTI settles at landlocked Cushing, Oklahoma (North American domestic use), while Brent is seaborne (North Sea) and the dominant global export benchmark (~75% of world crude trade). WTI typically trades $1–5/bbl below Brent due to transport cost to export markets. During US shale production surges and pipeline constraints, the discount can widen significantly.: Both are light sweet benchmarks, but WTI settles at landlocked Cushing, Oklahoma (North American domestic use), while Brent is seaborne (North Sea) and the dominant global export benchmark (~75% of world crude trade). WTI typically trades $1–5/bbl below Brent due to transport cost to export markets. During US shale production surges and pipeline constraints, the discount can widen significantly.
How does WTI price affect US gas prices? WTI is the primary feedstock cost for US refineries. A $10/bbl WTI change translates to roughly 6–8 cents per gallon (~2 cents/litre) at the pump, with a 2–6 week lag through the refinery, wholesale, and retail chain. NYMEX RBOB gasoline futures track WTI closely, with the crack spread representing refining margin on top of the crude cost.: WTI is the primary feedstock cost for US refineries. A $10/bbl WTI change translates to roughly 6–8 cents per gallon (~2 cents/litre) at the pump, with a 2–6 week lag through the refinery, wholesale, and retail chain. NYMEX RBOB gasoline futures track WTI closely, with the crack spread representing refining margin on top of the crude cost.