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Oil benchmark guide

Everything on this site in plain English: what the benchmarks are, how published prices differ from futures headlines, and the fundamentals that move the market.

A benchmark is a reference crude that the rest of the market prices against. Two matter most: WTI for U.S. barrels and Brent for most international trade. Thousands of individual crude grades trade at premiums or discounts to these two references.

This site shows published spot prices from the U.S. Energy Information Administration: the official record of what each benchmark sold for on a trading day. Futures prices in news headlines move continuously and can differ from the published spot figure.

Fundamentals

What moves oil prices

Supply and production

Output decisions by major producing countries and companies set the baseline for how much crude reaches the market in any given month.

Global demand

Economic activity, industrial output, and transportation fuel consumption determine how much crude the world actually needs.

Inventories

Weekly storage levels act as the market's buffer. Rising inventories tend to ease prices; drawdowns tend to support them.

Refining capacity

Crude only matters once it is refined. Maintenance seasons and outages change how much crude refiners can absorb.

Transportation

Pipeline capacity, shipping rates, and chokepoints influence how easily crude moves from wells to refiners.

Geopolitical disruptions

Conflicts, sanctions, and policy shifts in producing regions can remove supply from the market with little warning.

Reference

Benchmark reference

WTI: West Texas Intermediate, the primary U.S. crude benchmark. Light, sweet crude priced at Cushing, Oklahoma.
Brent: The North Sea benchmark that anchors pricing for much of the crude traded internationally.
Spot price: The price for crude bought and sold for immediate delivery, as opposed to future delivery.
Futures: Exchange-traded contracts to buy or sell crude at a set price on a future date. Futures often lead headlines; this site shows published spot prices.
Benchmark spread: The difference between two benchmarks, most commonly Brent minus WTI. It reflects transport costs, quality differences, and regional supply balances.
Inventory: Crude held in storage. U.S. inventory levels are reported weekly and are a closely watched supply signal.
Refinery margin: The difference between what a refiner pays for crude and what its refined products sell for. Margins drive how much crude refiners want to run.
Barrel conversion: One petroleum barrel equals 42 U.S. gallons, or roughly 159 liters. All barrel math on this site uses that standard.

WTI

West Texas Intermediate, the primary U.S. crude benchmark. Light, sweet crude priced at Cushing, Oklahoma.

Brent

The North Sea benchmark that anchors pricing for much of the crude traded internationally.

Spot price

The price for crude bought and sold for immediate delivery, as opposed to future delivery.

Futures

Exchange-traded contracts to buy or sell crude at a set price on a future date. Futures often lead headlines; this site shows published spot prices.

Benchmark spread

The difference between two benchmarks, most commonly Brent minus WTI. It reflects transport costs, quality differences, and regional supply balances.

Inventory

Crude held in storage. U.S. inventory levels are reported weekly and are a closely watched supply signal.

Refinery margin

The difference between what a refiner pays for crude and what its refined products sell for. Margins drive how much crude refiners want to run.

Barrel conversion

One petroleum barrel equals 42 U.S. gallons, or roughly 159 liters. All barrel math on this site uses that standard.