What it is
WTI crude, or West Texas Intermediate, is a high-quality light, sweet crude oil produced in the United States, predominantly in Texas. It is a key benchmark for U.S. oil prices, often traded on the New York Mercantile Exchange (NYMEX) for delivery at Cushing, Oklahoma. Its specific chemical properties make it ideal for refining into gasoline, diesel, and jet fuel, contributing to its high demand.
WTI crude prices are closely watched as an indicator of North American oil supply and demand, impacting U.S. energy costs and the profitability of domestic oil producers. The price difference between WTI and Brent crude can reflect regional supply gluts or transportation constraints, offering insights into market inefficiencies. Investors use WTI futures to speculate on oil prices or hedge against price volatility.
Why it matters
WTI crude prices are a direct gauge of U.S. energy costs and can influence domestic inflation, industrial activity, and energy sector stock performance.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice