West Texas Intermediate (WTI) is the benchmark crude oil price for the Americas. Traded on the New York Mercantile Exchange (NYMEX), it is the most actively traded commodity futures contract in the world.

Why It Matters

Oil is the lifeblood of the global economy. It affects transportation costs, manufacturing costs, food prices (via agricultural inputs), and heating/cooling costs. Oil price movements ripple through virtually every sector.

Key Price Drivers

WTI vs. Brent

WTI is lighter and sweeter than Brent. WTI prices reflect U.S. supply-demand dynamics (Cushing, Oklahoma delivery point), while Brent reflects global waterborne crude pricing.

Market Impact

Oil above $80/barrel raises inflation concerns and pressures consumer spending. Below $50 threatens U.S. shale viability and energy-sector earnings. Oil is the single most important commodity for global inflation dynamics.