West Texas Intermediate

West Texas Intermediate is a grade of light, sweet crude oil that serves as one of the world's primary oil pricing benchmarks. The crude is sourced from wells in the US interior, primarily in Texas, and is characterised by its low density and low sulphur content, making it ideal for refining into petrol and other high-value products. West Texas Intermediate is traded on the New York Mercantile Exchange and serves as the underlying commodity for oil futures contracts that help establish global crude prices. The benchmark is delivered to Cushing, Oklahoma, a major storage and pipeline hub that functions as the physical delivery point for futures contracts. West Texas Intermediate's quality specifications include an API gravity of around 39.6 degrees and sulphur content of about 0.24%, both of which contribute to its premium pricing relative to heavier, sourer crudes. The benchmark plays a critical role in North American energy markets and influences pricing for Canadian crude grades such as Western Canada Select. West Texas Intermediate prices are closely watched by traders, producers and policymakers as an indicator of oil market conditions and economic health. The grade competes with other global benchmarks including Brent crude, which is more widely used for international pricing, and Dubai crude, which anchors Middle Eastern oil markets. West Texas Intermediate has been produced and traded since the early twentieth century, evolving into a cornerstone of commodity markets and a key reference point for energy investment and policy decisions.