Brent-WTI Spread

The price difference between Brent Crude and West Texas Intermediate (WTI) crude oil.

The Brent-WTI spread measures the price difference between two of the world's primary crude oil benchmarks: Brent Crude (the international benchmark sourced from the North Sea) and West Texas Intermediate (the US benchmark). Because Brent is waterborne and easily shipped globally, while WTI is landlocked in the US midcontinent, the spread reflects global shipping costs, geopolitical risks, and regional supply-demand imbalances. For investors, a widening spread (where Brent becomes significantly more expensive than WTI) often signals rising international shipping rates, geopolitical tensions in the Middle East or Europe, or a bottleneck in US pipeline infrastructure. Conversely, a narrowing spread suggests ample international supply or highly efficient US export capacity. Energy sector investors track this spread closely because it directly impacts the profitability of refining companies. Refiners capable of buying cheaper domestic WTI and selling refined products at international Brent-linked prices can capture higher profit margins.

If Brent Crude is trading at $111.60 per barrel and WTI Crude is trading at $100.50 per barrel, the Brent-WTI spread is calculated as: $111.60 - $100.50 = $11.10 per barrel.