Oil prices affect everything from your gas bill to grocery prices. Understanding how crude oil markets work gives you insight into one of the most important commodity markets in the world.
Key Price Benchmarks
- Brent Crude: The global benchmark, priced from North Sea production
- WTI (West Texas Intermediate): The US benchmark, traded at Cushing, Oklahoma
What Drives Oil Prices
- OPEC+ production decisions
- Global demand (driven by economic growth, especially in China and India)
- US shale production levels
- Geopolitical events and sanctions
- Strategic petroleum reserve releases
- US dollar strength (oil is priced in dollars globally)