What is the benchmark crude oil for North America?

The benchmark crude oil for North America is West Texas Intermediate, commonly abbreviated WTI.

WTI is a light, sweet crude: “light” means it has relatively low density, while “sweet” means it contains comparatively little sulfur. Those qualities make it attractive for refining into products such as gasoline and low-sulfur diesel. WTI is principally associated with the United States and is priced through physical markets and futures contracts linked especially to Cushing, Oklahoma.

The benchmark’s influence grew after U.S. oil-price controls were removed in 1981 and spot trading developed around Cushing, Midland and Houston. The NYMEX WTI futures contract then became an important hedging and pricing tool for producers, refiners and traders worldwide.

WTI is not the only major benchmark. Brent is the leading international reference for much of Europe and global seaborne trade, while Dubai and Oman grades are important in Asian pricing. The OPEC Reference Basket is a basket of crudes, not the specific North American benchmark.