WTI and Brent are the world's two most important crude oil benchmarks. Understanding their differences is essential for anyone following energy markets, whether you're a trader, investor, or consumer trying to understand why gas prices move.
What Is WTI?
West Texas Intermediate is the primary U.S. crude benchmark, traded on the New York Mercantile Exchange (NYMEX). It is a light, sweet crude (39.6° API gravity, 0.24% sulfur) delivered at Cushing, Oklahoma. WTI is the reference price for U.S. domestic crude production.
What Is Brent?
Brent Crude is the global benchmark, traded on the Intercontinental Exchange (ICE). Originally based on North Sea production, it now references a basket of crudes. Brent prices approximately 75% of all internationally traded crude oil and serves as the reference for European, African, and Middle Eastern exports.
Why Brent Usually Trades Higher
Brent typically commands a $2-5 premium over WTI. This reflects Brent's role as a seaborne benchmark (more exposed to global supply-demand), the landlocked nature of Cushing delivery, and differing supply dynamics between the North Sea and the Permian Basin.