West Texas Intermediate (WTI) is the primary U.S. crude oil benchmark. Its futures contract is one of the world's most actively traded energy contracts and is tied to physical delivery at Cushing, Oklahoma.
How it works
WTI reflects U.S. crude-market conditions, including domestic production, pipeline flows, refinery demand, exports, and inventories around Cushing and the Gulf Coast.
Because U.S. crude is connected to global trade through exports, WTI still reacts strongly to international events, but its price can diverge from Brent when U.S. logistics or inventories differ from the rest of the world.
Why it matters
WTI is the most common reference for U.S. oil prices and is widely used in futures, options, company planning, and market commentary.
Comparing WTI with Brent can reveal whether an oil shock is mainly global or whether regional U.S. supply conditions are also important.
A simple market example
A global shipping disruption can push both Brent and WTI higher, but abundant U.S. inventories may keep WTI relatively cheaper than Brent.
Common mistakes
Assuming WTI is simply another name for Brent. They are distinct benchmarks with different delivery locations and market structures.
Ignoring U.S. inventory and pipeline conditions when explaining WTI moves.
Frequently asked questions
What does WTI stand for?
West Texas Intermediate.
Where is WTI delivered?
The benchmark futures contract is tied to delivery at Cushing, Oklahoma.
Why can WTI trade below Brent?
Regional logistics, inventories, export economics, and differences in the underlying crude markets can create a spread.
Educational content only. Definitions describe common market usage and may vary by jurisdiction, instrument, or institution.