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As the global crude oil market continuously evolves, so do the tools that traders, refiners and producers rely on to navigate its complexities. Among these tools, futures contracts play a pivotal role, allowing market participants to manage risk and ensure liquidity. In today’s RBN blog, we’ll explore what sets apart two major futures contracts for West Texas Intermediate (WTI) crude oil, focusing on the differences in location, connectivity and quality — and how those distinctions define their roles in the market. 

The U.S. crude oil market has undergone a drastic shift since the Shale Revolution. After a quarter-century of declining production and increasing dependence on imported oil, the U.S. has become the world’s leading producer. This transformation turned the U.S. into a major exporter and a critical supplier to the international market and also led to an evolution in crude oil trading. In today’s RBN blog, the first in a series, we’ll explore the history of West Texas Intermediate (WTI) futures contracts.