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Commodities guide
WTI vs Brent Crude: Key Differences Explained
WTI vs Brent compares two crude oil benchmarks. WTI, or West Texas Intermediate, is a crude stream from Texas and southern Oklahoma, traded in the spot market at Cushing, Oklahoma. Brent is listed as Brent Crude Futures on ICE Futures Europe, and its contract can settle against ICE Brent Index. The two differ in origin, delivery and settlement.
In brief
What is the difference between WTI and Brent?
WTI and Brent are the two oil benchmarks most often quoted in news. Here is how they differ in origin, delivery and settlement, and what to check before you rely on either price.
Key takeaways
- WTI vs Brent is a comparison of two crude oil benchmarks. They differ in origin, delivery and settlement, so the same headline can refer to different contracts.
- EIA describes WTI as a crude stream produced in Texas and southern Oklahoma and a marker for pricing other crude streams. In a 2014 article it described both WTI and Brent as light, sweet crude.
- ICE describes Brent Crude Futures as a deliverable contract based on EFP delivery, with an option to cash settle against the ICE Brent Index.
- The price gap between the two is not fixed. It reflects regional supply, transport, storage and crude quality, and it can widen or narrow.
- Check the exchange's contract specification before you trade either benchmark, because delivery, expiry and contract size set the instrument you actually hold.
WTI vs Brent: two benchmarks, two contracts
WTI vs Brent is a comparison of two crude oil benchmarks. A benchmark is a reference price for a type of crude oil. Other prices are often read against it, so knowing which benchmark a headline means is the first step in reading oil news.
WTI, or West Texas Intermediate, is described by the US Energy Information Administration (EIA) as a crude stream produced in Texas and southern Oklahoma. EIA also says it serves as a reference or 'marker' for pricing a number of other crude streams. Brent is quoted through ICE's Brent Crude Futures contract, which ICE lists on ICE Futures Europe.
In practice, a WTI price and a Brent price usually refer to different contracts with different terms. Each has its own delivery and settlement rules, which is why a price on its own tells you little. Read the contract or benchmark the source names. For the wider picture of raw materials, read what are commodities first.
WTI vs Brent side by side
The table compares the two benchmarks on the points that matter most when you read a price. Each cell names its source. Where a cell says to check the specification, read the official contract specification of the exchange that lists the futures contract.
| Point | WTI (West Texas Intermediate) | Brent (ICE Brent Futures) |
|---|---|---|
| Origin or listing | A crude stream produced in Texas and southern Oklahoma (EIA). | Listed as Brent Crude Futures on ICE Futures Europe, with North Sea as the trading screen hub name (ICE). |
| Crude quality | A light, sweet crude oil produced in the United States (EIA, 2014). | Four light, sweet crude streams produced in the North Sea: Brent, Forties, Ekofisk and Oseberg (EIA, 2014). |
| Delivery or settlement | Traded in the domestic spot market at Cushing, Oklahoma (EIA). For futures delivery terms, check the exchange's official specification. | A deliverable contract based on EFP delivery, with an option to cash settle against the ICE Brent Index price for the last trading day (ICE). |
| Daily settlement price | Check the exchange's official specification. | The weighted average price of trades during a two-minute settlement period from 19:28:00, London time (ICE). |
| Contract size | Check the exchange's official specification. | 1,000 barrels, traded in any multiple of 1,000 barrels (ICE). |
| Typical pricing role | A reference or marker for pricing a number of other crude streams (EIA). In 2014, EIA said it was a benchmark for other US crudes and for crude imported from Canada, Mexico and South America. | In 2014, EIA called Brent the most widely used global crude oil benchmark, used to price light, sweet crude in Europe, the Mediterranean, Africa, Australia and some countries in Asia (EIA, 2014). |
No prices, spreads or forecasts are shown. EIA uses light for higher API gravity (lower density) and sweet for low sulphur content. For grade-level API gravity and sulphur limits, and for the grades deliverable today, check the exchange's official specification.
Delivery and settlement: physical, cash or both
Delivery and settlement are where WTI and Brent differ most in practice. A futures contract can end in physical delivery of the underlying crude, in a cash payment, or in a mix of both, depending on its rules.
For Brent, ICE describes the contract as a deliverable contract based on EFP delivery. It adds an option to cash settle against the ICE Brent Index price for the last trading day of the futures contract. The contract size is 1,000 barrels. ICE lists exchange of futures for physical (EFP) among the trading methods available for the contract, alongside electronic futures, exchange of futures for swap (EFS) and block trades.
ICE also sets a daily settlement price for Brent futures: the weighted average price of trades during a two-minute settlement period from 19:28:00, London time. ICE adds that all open contracts are marked to market daily.
For WTI, EIA says the crude is traded in the domestic spot market at Cushing, Oklahoma. Exchange-traded WTI futures have their own delivery, expiry and contract-size terms, set by the exchange that lists them. Read that exchange's official specification before you trade.
Why WTI and Brent prices can differ
The price gap between two benchmarks is not fixed. It reflects where each crude is produced and delivered, how each contract is priced and settled, and what it costs to move crude between regions. Quality differences can matter as well.
EIA explains that two of the most important quality characteristics of crude oil are density and sulphur content. It says crude oils that are light (higher API gravity, lower density) and sweet (low sulphur content) are usually priced higher than heavy, sour crude oils. EIA also says other crudes are compared with a benchmark by an agreed-upon differential that takes into account quality, such as API gravity or sulphur content, transport costs and regional and global supply and demand.
Transport, storage and regional supply and demand can all widen or narrow a gap. These are general points about how oil markets work. They are not a description of any current market, and this guide does not predict how the gap will move.
Scheduled energy data can also move both benchmarks. Scheduled releases, including EIA inventory data, are covered on the economic calendar page. A release is a scheduled data point, not a forecast, and its effect on price is uncertain.
How to read a WTI or Brent quote
A quote is only meaningful when you know what it refers to. The checks below apply to any oil benchmark, whether you read it in a news story or see it on a platform.
- Check the name: confirm whether the figure is WTI futures, Brent futures, a spot price or a derivative that follows one of them.
- Check the contract: read the contract size, delivery or settlement terms and expiry month from the exchange or your broker.
- Check the month: futures prices refer to a specific contract month. A quote for a different month is a different instrument.
- Check the source: the exchange's specification sets the contract terms, and EIA describes the benchmarks. News and commentary may simplify both.
An oil CFD is a separate contract from the futures it may follow. Its terms, costs and expiry are set by the provider, so read what is a CFD before you consider one. For how futures work in another market, see what are stock futures.
Risk disclosure
- Oil prices can move sharply on supply news, inventory data, geopolitical events and changes in demand. Either benchmark can fall as well as rise.
- Futures and CFDs on oil can use leverage. A small move against a position can produce a loss that is large compared with the margin posted.
- Expiry dates, roll dates and delivery rules change which instrument you hold. Check them before you trade.
- The gap between WTI and Brent can widen or narrow for reasons this guide does not predict.
- This page is educational. It is not a price forecast, a trading signal or personal financial advice.
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Primary references
Sources were checked on 9 November 2026. They explain market rules and concepts; they do not certify RTX5 or provide individual financial advice.
EIA glossary: West Texas Intermediate (WTI - Cushing)Supports that WTI is a crude stream produced in Texas and southern Oklahoma, that it serves as a reference or marker for pricing other crude streams, and that it is traded in the domestic spot market at Cushing, Oklahoma.ICE: Brent Crude Futures contract specificationsSupports the ICE Futures Europe listing and North Sea hub name, the deliverable contract based on EFP delivery with an option to cash settle against the ICE Brent Index price for the last trading day, the 1,000-barrel contract size, the daily settlement period from 19:28:00 London time, daily marking to market, and the listed trading methods, including EFP.EIA Today in Energy: Benchmarks play an important role in pricing crude oil (28 October 2014)Supports, as of 2014, that WTI is a light, sweet US crude priced at Cushing, Oklahoma, and a benchmark for other US and imported crudes; that Brent comprised four light, sweet North Sea streams and was the most widely used global benchmark; and that differentials to benchmarks reflect quality, transport and supply and demand.EIA Today in Energy: Crude oils have different quality characteristics (16 July 2012)Supports that density and sulphur content are two of the most important quality characteristics, and that light (higher API gravity) and sweet (low sulphur) crudes are usually priced higher than heavy, sour crudes.RTX5 product availabilityRTX5 status record. Use it to check which RTX5 products and clients are live before relying on any feature.
Questions readers ask
What is the difference between WTI and Brent?
The main differences are origin, delivery and settlement. WTI, or West Texas Intermediate, is a crude stream from Texas and southern Oklahoma, traded in the spot market at Cushing, Oklahoma. Brent Crude Futures on ICE Futures Europe are a deliverable contract based on EFP delivery, with an option to cash settle against the ICE Brent Index. The contract specifications give the final terms.
Why does the gap between WTI and Brent change?
The gap is not fixed. It can widen or narrow as transport costs, storage, regional supply and demand, and crude quality change. This guide does not describe any current gap or predict how it will move. Scheduled data and news can affect both benchmarks, so check the source behind any claim before you act on it.
Is Brent physically delivered?
ICE describes Brent Crude Futures as a deliverable contract based on EFP delivery, with an option to cash settle against the ICE Brent Index price for the last trading day. Settlement can therefore be physical through EFP or in cash, depending on how the contract is used. Read the ICE contract specification for the exact rules before you trade.
Where is WTI delivered?
EIA describes WTI as traded in the domestic spot market at Cushing, Oklahoma, and in a 2014 article said it is priced at the Cushing crude oil trading hub. Exchange-traded WTI futures have their own delivery terms. Check the listing exchange's official specification for the delivery location, contract months and contract unit before you trade.
Which benchmark should I trade?
This guide does not recommend either benchmark and does not give trading calls. The right instrument depends on your goals, the products your broker offers, the contract terms and the rules in your country. Read the specification of any contract you consider, and check whether you could accept a loss on it.
Does RTX5 offer WTI or Brent trading?
This page does not describe an RTX5 feature for commodities or futures trading. RTX5 is Orrnn's trading terminal and broker-technology product, its Windows desktop client is in preview, and RTX5 is not a broker. Check the product availability record before relying on any RTX5 feature.
Keep learning
What are commodities?What commodities are, how they are traded and why raw-material prices move.Economic calendarScheduled economic releases, including EIA inventory data, and how to read them.What are stock futures?How futures contracts work, with expiry, settlement and margin.What is a CFD?How a CFD tracks a price without ownership, and why its terms can differ from the futures it follows.