Brent vs WTI Crude Oil
Brent and WTI are the two major crude oil benchmarks. They usually track within a few dollars — except when North American pipeline capacity falls short of shale production.
DCOILBRENTEUDCOILWTICO- Brent
- WTI
Brent crude is priced from waterborne shipments out of the North Sea and serves as the benchmark for roughly two-thirds of globally traded oil. West Texas Intermediate (WTI) is priced at Cushing, Oklahoma — an inland hub for North American crude — and serves as the benchmark for U.S. domestic production.
Until 2010 the two traded nearly in lockstep, with WTI typically a dollar or two above Brent due to slightly higher quality. Then the U.S. shale boom flipped the relationship. WTI fell to a $20+ discount as Cushing storage filled faster than pipelines could move crude to the Gulf Coast refining complex. The spread persisted for years until new pipeline capacity (Permian-to-Gulf takeaway, Keystone, Seaway reversal) caught up with production.
In the post-2020 era the spread has typically been $2–6, with WTI trading at the discount. It widens when U.S. inventories build faster than the Gulf can export, and narrows during global supply disruptions that affect waterborne crude more directly.
The WTI–Brent spread is one of the most-watched ratios in energy markets. A widening spread signals U.S. supply abundance or pipeline congestion; a narrowing spread signals global supply tightness or strong U.S. export demand.
Frequently asked questions
Why did WTI go negative in April 2020?
WTI futures briefly traded below zero on April 20, 2020 because traders holding May contracts couldn't take physical delivery — Cushing storage was full and there was nowhere to put the oil. The negative price was a technical squeeze rather than a market valuation; physical Brent never traded negative.
Which benchmark do U.S. gasoline prices follow?
U.S. retail gasoline tracks Brent more closely than WTI because U.S. refineries on the East and West Coasts import waterborne crude priced against Brent. Only Gulf Coast and Midwest gasoline tracks WTI directly.
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