WTI (West Texas Intermediate)

1. Definition

WTI is a grade of crude oil used as a benchmark in oil pricing. It is extracted from wells in the U.S. (Texas, Louisiana, and North Dakota) and serves as the reference price for the Americas. * Traded on NYMEX (CME) under the ticker CL.

2. Quality

• Light, Sweet: API gravity of ~39.6 and sulfur content of ~0.24%.
• It is extremely high quality, ideal for refining into gasoline.

3. Key Characteristics

• Landlocked: Unlike Brent, WTI is landlocked. The physical delivery point is Cushing, Oklahoma.
• Storage Constraints: Because it relies on pipelines and storage tanks in Cushing, its price is highly sensitive to U.S. inventory levels and pipeline capacity.