WTI and Brent are the two main benchmark prices for crude oil. West Texas Intermediate is US oil delivered by pipeline to Cushing, Oklahoma, and trades on NYMEX in New York. Brent is a basket of North Sea and, since 2023, US crude loaded onto ships, and trades on ICE in London. They are similar in quality and usually move together, but transport and regional supply can push their prices apart.
Key takeaways
- Brent is the reference for roughly two thirds of internationally traded crude; WTI is the reference for the United States.
- WTI is slightly lighter and lower in sulphur, but Brent usually costs a few dollars more because it is seaborne and easier to move to any buyer.
- On 20 April 2020 the expiring WTI contract settled at minus $37.63 a barrel, because storage at Cushing was full. Brent did not go negative.
- Both are quoted in US dollars per barrel and respond to the same global drivers.
- The gap between them, the Brent–WTI spread, widens when US supply is trapped inland and narrows when exports flow freely.
| WTI | US light sweet crude, delivered at Cushing, Oklahoma; NYMEX (CME Group) |
|---|---|
| Brent | North Sea basket plus WTI Midland since 2023, seaborne; ICE Futures Europe |
| Unit | US dollars per barrel; one barrel is 42 US gallons, about 159 litres |
| Futures contract size | 1,000 barrels |
| Usual relationship | Brent a few dollars above WTI |
| Symbols at Marketsall | WTI, BRENT |
| CFD contract size | Shown in the symbol specification in MetaTrader 5 |
WTI vs Brent: the differences that matter
| Feature | WTI | Brent |
|---|---|---|
| Where it comes from | US inland fields, chiefly Texas | North Sea fields, plus US crude shipped to Rotterdam |
| Delivery | Pipeline and storage hub at Cushing, Oklahoma | Loaded onto tankers at sea terminals |
| Exchange | NYMEX, New York | ICE, London |
| Quality | API gravity about 39–40, sulphur about 0.24% | API gravity about 38, sulphur about 0.37% |
| What it prices | US crude; imports into and exports from the US | About two thirds of internationally traded crude |
| Most sensitive to | US production, pipelines, Cushing inventories | OPEC+ policy, Middle East and shipping risks |
| Settlement of the future | Physical delivery | Cash settled against an index |
Light means low density; sweet means low sulphur. Both make a crude cheaper to refine into petrol and diesel, and both benchmarks qualify. On quality alone WTI would be worth slightly more.
Why is Brent usually more expensive than WTI?
Location. Brent is already on a ship and can go to whichever refinery pays most. WTI sits in the middle of a continent and has to travel by pipeline to the Gulf Coast before it can be exported, which costs a few dollars a barrel. Before the US shale boom WTI often traded above Brent; when US output surged after 2010 and pipelines could not keep up, the discount at times exceeded $20. Since the US lifted its crude export ban at the end of 2015 the gap has usually been much smaller.
| Spread widens (WTI cheaper) when… | Spread narrows when… |
|---|---|
| US production rises faster than pipeline or export capacity | New pipelines or export terminals open |
| Inventories build at Cushing | Cushing inventories fall |
| Middle East or shipping risk lifts seaborne prices | Global demand weakens while US supply is tight |
| OPEC+ cuts output | OPEC+ raises output |
What happened when WTI went negative?
In April 2020 lockdowns had collapsed demand and storage at Cushing was nearly full. WTI futures require physical delivery there. On 20 April, the day before the May contract expired, holders who could not take delivery had to pay others to take the contracts off their hands, and the price settled at minus $37.63. Brent, which is cash settled and seaborne, fell sharply but stayed positive. The episode shows why expiry and rollover matter for oil CFDs, and why a CFD’s price can differ from the “oil price” quoted in the news.
What moves both benchmarks?
The shared drivers, OPEC+ decisions, inventories, demand and the dollar, are covered in what moves crude oil prices. The currency link is in how the US dollar affects commodities and the USD/CAD guide; the inflation link is in how the oil price affects inflation and interest rates.
WTI or Brent: which is more relevant to you?
| If the news is about… | Look first at | Why |
|---|---|---|
| US inventories, shale output, hurricanes in the Gulf of Mexico | WTI | These are US supply events |
| OPEC+ meetings, the Strait of Hormuz, sanctions | Brent | These affect seaborne supply |
| Global growth or the dollar | Either | Both respond together |
| European fuel costs | Brent | European refiners buy Brent-linked crude |
What it costs to trade WTI and Brent as a CFD
Oil CFDs track the price of crude futures without delivery of any oil. See what a CFD is.
| Cost | When it applies | Note for WTI and Brent |
|---|---|---|
| Spread | Every trade, at entry | Usually a few cents a barrel in active hours, wider overnight |
| Commission | Depends on instrument and account type | Shown in the symbol specification in MetaTrader 5 |
| Swap / overnight financing | Positions held past the daily rollover | Depends on how the provider finances oil CFDs. |
| Contract rollover | Oil CFDs are normally based on monthly futures | When the front contract nears expiry the CFD moves to the next month and an adjustment is applied so that the change creates no profit or loss. |
| Slippage | Fast markets, gaps, news | Common on inventory data, OPEC+ headlines and at the weekly open |
Key risks
High volatility. Daily moves of 2–3% are normal and 5% days are not rare.
Headline risk. OPEC+ statements and geopolitical news arrive without a schedule. See gap risk.
Expiry effects. Prices can behave oddly around futures expiry, as April 2020 showed.
Leverage. Size positions from the percentage move you can tolerate; see position sizing and how leverage increases trading risk.
Risk warning. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, the products offered on this website may not be suitable for all investors because of the risk of losing all of your invested capital. You should never invest money that you cannot afford to lose, and never trade with borrowed money.
Frequently asked questions
What is the difference between WTI and Brent?
WTI is US crude delivered by pipeline to Cushing, Oklahoma, and traded on NYMEX. Brent is a basket of North Sea and US crude loaded onto ships and traded on ICE in London. Brent prices about two thirds of internationally traded oil; WTI is the US benchmark. Quality is similar, with WTI slightly lighter and sweeter.
Why is Brent more expensive than WTI?
Brent is seaborne, so it can be shipped directly to any buyer. WTI is landlocked and must be piped to the coast before export, which adds cost. When US production outgrows pipeline and export capacity, WTI’s discount widens.
Why did WTI go negative in 2020?
On 20 April 2020 demand had collapsed and storage at Cushing, Oklahoma, was almost full. The expiring May WTI contract required physical delivery, so traders who could not store oil paid others to take the contracts, and the price settled at minus $37.63 a barrel.
Do WTI and Brent move together?
Most of the time, yes. Both respond to global supply, demand, OPEC+ policy and the US dollar, so their daily direction is usually the same. The gap between them changes with regional factors such as US pipeline capacity and shipping risk.
Which oil benchmark is used most?
Brent. It is the reference price for roughly two thirds of the world’s internationally traded crude, including most oil from Europe, Africa and the Middle East sold to the West. WTI is the main reference for oil produced and consumed in the United States.
Related reading
Follow oil past the front month
Once you know which benchmark a story belongs to, the next question is the cost of holding it: the oil trading guide covers contango, backwardation and the Wednesday inventory report. For the supply decisions that weigh most on Brent, read what OPEC is.
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