West Texas Intermediate (WTI) crude oil is the primary benchmark for US oil pricing, traded as a futures contract on the NYMEX/CME exchange. Oil is the world's most actively traded commodity and a critical input for transportation, manufacturing, petrochemicals, and energy production. OPEC+ (Organization of Petroleum Exporting Countries plus allies including Russia) controls roughly 40% of global oil production.
Crude oil prices are driven by OPEC+ production decisions, global demand forecasts (IEA, EIA), US inventory reports (weekly EIA data), geopolitical supply risks (Middle East tensions, Russia sanctions), US shale production trends, Chinese economic growth and demand, refinery utilization rates, and the dollar. Seasonal patterns include higher demand in summer (driving season) and winter (heating).
WTI is extremely volatile and reacts instantly to geopolitical headlines. The weekly EIA inventory report (Wednesday 14:30 UTC) is a key scheduled catalyst. Oil contango/backwardation structure signals supply/demand imbalance. OPEC meetings create binary event risk. The commodity has high correlation with energy stocks and inflation expectations.
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Common questions about Crude Oil (CL=F)