About WTI Crude Oil
West Texas Intermediate (WTI) is the US benchmark crude, a light, sweet oil delivered at Cushing, Oklahoma. Its futures are among the most liquid commodity contracts in the world and a key gauge of global energy sentiment.
What moves the wti crude oil price
- OPEC+ production policy and compliance with output quotas.
- US shale output, rig counts and the weekly EIA inventory report (usually Wednesday 10:30 am ET).
- Global demand from transport, aviation and petrochemicals, closely tied to economic growth.
- Geopolitical events in producing regions and shipping routes.
- Storage levels at Cushing and the shape of the futures curve.
WTI versus Brent
WTI (West Texas Intermediate) is a light, low-sulphur US crude priced for delivery at the storage hub in Cushing, Oklahoma. Brent is the seaborne benchmark used to price most of the world's crude. WTI normally trades at a discount to Brent because US barrels must be moved to the coast for export. The size of that spread tells you about US pipeline capacity, export demand and inventory levels at Cushing. A spread that suddenly narrows or widens is often the first sign of a regional supply problem.
What to watch each week
The EIA Weekly Petroleum Status Report, usually released on Wednesdays at 10:30 am US Eastern Time, is the most closely followed data point. Traders compare the change in commercial crude stocks, Cushing stocks, gasoline and distillate inventories and refinery utilisation with analyst expectations. The American Petroleum Institute publishes an industry estimate the evening before. Rig counts from Baker Hughes come out on Fridays and hint at future US output.
On the policy side, OPEC+ meetings set production targets for the group, and announcements of cuts or increases can gap the price. Sanctions, shipping disruptions and conflicts in producing regions add risk premiums that can disappear as quickly as they arrive.
The futures curve
Because CL is a physically delivered contract, the relationship between the front month and later months matters. When near-term barrels cost more than later ones (backwardation), the market is signalling tight supply today. When later months are more expensive (contango), there is plenty of oil and it pays to store it. Watch for contract roll dates: continuous charts can show jumps when the front month changes, and most traders move to the next contract several days before expiry to avoid delivery obligations.
Seasonality
US gasoline demand peaks in the summer driving season, roughly Memorial Day to Labor Day, which supports refinery crude buying in late spring. Refineries schedule maintenance in spring and autumn, temporarily reducing crude demand. The Atlantic hurricane season (June to November) can disrupt Gulf of Mexico production and refining. Winter brings heating-oil demand in the northern hemisphere. These tendencies are well known and usually priced in, so surprises relative to them matter more than the calendar itself.
Contract specifications
| Benchmark future | NYMEX Light Sweet Crude Oil (CL), CME Group |
|---|---|
| Contract size | 1,000 US barrels (42,000 gallons) |
| Price quote | US dollars and cents per barrel |
| Minimum tick | $0.01 per barrel = $10 per contract |
| Contract months | Every calendar month, many years forward |
| Settlement | Physical delivery at Cushing, Oklahoma |
| Last trading day | Usually three business days before the 25th of the month before delivery |
| Smaller contracts | Micro WTI (MCL) 100 barrels, cash-settled |
Specifications as published by the exchange; they can change, so confirm on the exchange website before trading.
Trading hours
CME Globex trades almost around the clock: Sunday to Friday, 6:00 pm to 5:00 pm US Eastern Time, with a one-hour daily break.
Contract basics
NYMEX Light Sweet Crude Oil (CL) covers 1,000 barrels and is physically delivered at Cushing. Minimum tick is $0.01 per barrel ($10 per contract). A Micro WTI contract covers 100 barrels.
Quote unit
USD per barrel. Hours and specifications can change; always confirm on the exchange's website, especially around holidays.
WTI Crude Oil FAQ
What moves the price of wti crude oil?
OPEC+ production policy and compliance with output quotas. US shale output, rig counts and the weekly EIA inventory report (usually Wednesday 10:30 am ET). Global demand from transport, aviation and petrochemicals, closely tied to economic growth. Geopolitical events in producing regions and shipping routes. Storage levels at Cushing and the shape of the futures curve.
When does wti crude oil trade?
CME Globex trades almost around the clock: Sunday to Friday, 6:00 pm to 5:00 pm US Eastern Time, with a one-hour daily break.
What is the standard wti crude oil contract?
NYMEX Light Sweet Crude Oil (CL) covers 1,000 barrels and is physically delivered at Cushing. Minimum tick is $0.01 per barrel ($10 per contract). A Micro WTI contract covers 100 barrels.
Why did WTI once trade below zero?
In April 2020 the expiring May contract briefly settled below zero because storage at Cushing was nearly full and holders who could not take delivery had to pay others to take their contracts. It shows why physically delivered futures need careful handling near expiry.
What is the difference between WTI and Brent?
WTI is a US crude delivered at Cushing, Oklahoma; Brent is a North Sea-based seaborne benchmark. Brent usually trades at a premium and sets the price for most internationally traded oil.
When is the EIA oil inventory report released?
Normally Wednesdays at 10:30 am US Eastern Time, moved by a day in holiday weeks.
Does a strong dollar lower oil prices?
Often, because oil is priced in dollars and becomes more expensive for buyers using other currencies, but supply news can easily outweigh currency effects.