WTI and Brent: The Two Numbers Behind Oil Prices

If you've been following the news lately, oil prices are just about everywhere right now. 

Crude prices have shot up as ships have stopped moving through the Strait of Hormuz because of the fighting in the Middle East. 

You've probably heard reporters throwing around the words "WTI" and "Brent" — but what do they actually mean?

Think of them like the Dow Jones, but for oil. 

They're just benchmarks — standard prices the world uses to buy and sell crude. 

WTI, or West Texas Intermediate, is U.S. oil, mostly out of Texas. 

Brent comes from the North Sea off Europe, and it's really the world's go-to price for oil. 

So why is WTI a bit cheaper than Brent right now — about $10 a barrel lower? 

It basically comes down to location. 

The Middle East chaos is hitting Europe and Asia a lot harder than it's hitting us. 

The U.S. headed into this crisis with solid oil stockpiles, which has helped cushion prices here at home. 

Europe isn't as lucky.

Bottom line — when either number climbs, you're going to feel it at the pump. 

Now at least you know what you're looking at.

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