WTI and Brent crude

In plain terms

Crude oil varies in quality and delivery terms by origin, so there are several benchmark prices. The two most quoted are WTI, delivered at Cushing, Oklahoma, and Brent, the reference for much of the world's trade, including Europe and Africa. Much Middle Eastern oil bound for Asia is priced off Dubai crude. All three usually move in the same direction.

Why it matters

Oil feeds into gasoline and diesel prices, airfares, shipping costs and plastics, touching almost every price in the economy. A big oil spike lifts inflation, squeezes household budgets and can change central banks' rate decisions.

How it connects to markets

• Rising oil: energy and refining stocks tend to gain, while airlines, chemicals and transport suffer; inflation worries lift yields; currencies of oil importers such as the won and yen face pressure
• Falling oil: easing inflation and more spending power, though if it reflects weak demand, it reads as a slowdown signal
• Main drivers: OPEC+ output decisions, Middle East and other geopolitical risks, demand from China and the US, and US crude inventories

Where to check

• US Energy Information Administration (EIA) petroleum data