WTI is the main oil benchmark for North America as it is sourced from the United States, primarily from the Permian Basin. The oil comes mainly from Texas. It then travels through pipelines where it is refined in the Midwest and the Gulf of Mexico. The main delivery point for physical exchange and price settlement for WTI is Cushing, Oklahoma.
The Cushing hub delivery system consists of 35 (20 inbound and 15 outbound) pipelines and 16 storage terminals.
WTI is the underlying commodity of the New York Mercantile Exchange’s (NYMEX) oil futures contract and is considered a high-quality oil that is easily refined.
West Texas Intermediate (WTI) is a light, sweet crude oil that serves as one of the main global oil benchmarks.
It is sourced primarily from inland Texas and is one of the highest quality oils in the world, which is easy to refine.
WTI is the underlying commodity for the NYMEX’s oil futures contract.
WTI is often compared to Brent crude, which is an oil benchmark for two-thirds of the world’s oil contracts based on oil extracted in the North Sea.