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Brent vs WTI

The two main oil price benchmarks. Brent, from the North Sea, is used to price most internationally traded oil. WTI (West Texas Intermediate) is the US benchmark, delivered at Cushing, Oklahoma.

Key points

  • Both are quoted in dollars per barrel (159 litres).
  • The two usually trade within a few dollars of each other.
  • Brent reacts more to events in the Middle East and Europe; WTI to US supply and storage.

Example

When a briefing says Brent rose to $85, it means the price of the nearest Brent futures contract.

In history

In April 2020 the WTI contract due for delivery briefly traded at minus $37 a barrel because storage at Cushing was nearly full. Brent, which is settled in cash rather than physical delivery, stayed positive.

Related terms