Brent vs WTI: The Spread Explained
Brent and WTI are both light, sweet crudes, yet they rarely trade at the same price. This page shows both live and explains what drives the gap between them, known as the Brent-WTI spread.
To estimate the spread, subtract the WTI quote from the Brent quote. The two front months can refer to different delivery months around expiry dates.
| Brent | WTI | |
|---|---|---|
| Origin | North Sea basket (UK and Norway), plus WTI Midland | US inland, mainly the Permian Basin |
| API gravity / sulfur | ~38° / ~0.4% | ~39–40° / ~0.2–0.4% |
| Main futures | ICE Futures Europe (B) | NYMEX (CL) |
| Settlement | Cash, against the ICE Brent Index | Physical delivery at Cushing, Oklahoma |
| Pricing location | Waterborne, Northwest Europe | Landlocked hub in Oklahoma |
| Expiry | Last business day, two months before delivery | About the 20th of the month before delivery |
| Used to price | Most internationally traded crude | US domestic crude |
Why Brent usually costs more than WTI
Quality is not the reason. WTI is slightly lighter and sweeter, so a refinery would pay a little more for it if both were in the same place. The premium comes from location and logistics:
- WTI is priced at Cushing, more than 500 miles from the nearest export terminal. Pipeline tariffs to the Gulf Coast, terminal fees and transatlantic freight all have to be paid before WTI can compete with Brent in Europe or Asia.
- Brent is priced on the water, so it is immediately available to buyers worldwide and reflects international supply risk.
- The spread therefore tends to settle near the cost of exporting US crude, roughly $3–$5 per barrel in normal conditions.
How the spread has changed
- Before 2010, WTI usually traded at a small premium to Brent. Imports flowed into the US, and inland crude was worth more than crude on the coast.
- 2011–2013: Shale output surged into Cushing faster than pipelines could carry it south. The discount widened sharply and exceeded $25 in the second half of 2011.
- 2014–2015: New pipelines reversed flows towards the Gulf, and the spread narrowed.
- December 2015: The US lifted its 40-year ban on crude exports. Since then the spread has been anchored by export economics and has mostly stayed between $2 and $8.
- 2022: Sanctions on Russia and record US exports to Europe widened the spread temporarily. It then narrowed again as freight costs eased.
What a widening or narrowing spread tells you
- Widening (Brent rising relative to WTI) can mean international supply risk, such as Middle East or Russian disruptions, a US crude surplus, rising tanker rates or US export bottlenecks.
- Narrowing can mean falling US production, high US refinery demand, cheaper freight or a weaker international market.
Spread traders express these views with calendar-matched Brent and WTI futures, or with the inter-commodity spread products listed on ICE and CME.
Which benchmark matters for you?
If you follow US gasoline prices, US producers or US inventories, watch WTI. For European, Asian or African fuel costs, OPEC policy or global inflation, watch Brent. Most analysts watch both and treat the spread as a check on whether a move is global or local to the US.
Brent vs WTI FAQ
What is the Brent-WTI spread today?
Subtract the live WTI price from the live Brent price shown above. In recent years the spread has usually been between about $2 and $8 per barrel, with Brent higher.
Is WTI better quality than Brent?
Slightly. WTI is a little lighter (higher API gravity) and lower in sulfur. Brent's premium comes from its coastal pricing location, not from better quality.
Has WTI ever been more expensive than Brent?
Yes. Before about 2010, WTI often traded at a premium of a dollar or two. It has also briefly traded above Brent at times since then, usually around contract expiries or US supply disruptions.
Why did the spread blow out in 2011?
Rapidly rising shale output and Canadian imports filled Cushing faster than pipelines could move crude to the Gulf Coast. WTI was trapped inland and fell more than $25 below Brent until new pipeline capacity arrived.
Related pages
Brent Crude Oil Price
Current Brent crude oil price live in USD per barrel, with a real-time chart, ICE Brent contract facts and what is driving today's move.
WTI Crude Oil Price
Current WTI crude oil price live in USD per barrel, with a real-time chart, NYMEX contract facts, Cushing delivery and key US drivers.
Crude Oil Price Chart
Live crude oil price chart with Brent and WTI, from 1-minute to monthly timeframes. Includes indicators, long-term performance and a guide to reading oil charts.
What Moves Oil Prices
What moves oil prices: OPEC+, inventories, demand, spare capacity, geopolitics, the dollar, rates, speculation and the futures curve.