Oil price (WTI spot)
WTI
What it is
Price per barrel of West Texas Intermediate crude oil (US benchmark) in US dollars. It's the principal global benchmark for energy prices. Brent (Europe/Asia benchmark) typically tracks WTI within $2-5.
How to read it
A rapid oil rise pressures inflation (gasoline, transport, industrial inputs) and slows growth — a stagflationary shock. A drop stimulates purchasing power. Levels > $100 historically trigger demand destruction.
Common reference points
- Low — growth-stimulating< $50
- Normal$50 – $80
- High — inflationary pressure$80 – $100
- Very high — recession risk> $100
Orders of magnitude, not a rule: the same number does not mean the same thing from one sector to the next.
What it does not tell you
WTI responds to supply (OPEC, US shale production) AND demand (global growth, China). Hard to attribute moves to a single factor. And the oil-market correlation has varied massively by decade (positive in the 1970s, negative from the 2010s shale era).
Other measures — Commodities
Educational content. Polaris is not a registered investment adviser and makes no recommendation.