WTI (West Texas Intermediate) Crude Oil is the US benchmark for crude oil pricing. Oil is the most important commodity in the world economy — it drives transportation, manufacturing, and ultimately inflation.
What moves oil
Supply: OPEC+ production decisions, US shale output, geopolitical events (Middle East, Russia). Demand: global economic growth, especially China and India. Inventories: weekly EIA data on US stockpiles. Speculation: futures positioning by hedge funds.
Oil price ranges
Below $50: stressful for US shale producers. $50-80: moderate, balanced. $80-100: helpful for producers, tolerable for consumers. Above $100: inflation pressure, recession risk. Above $130: historically associated with recessions (1973, 1979, 2008).
What it means for your finances
Direct impact: gasoline prices at the pump, heating costs, airline ticket prices. Indirect impact: high oil = inflation pressure = higher interest rates = lower stock valuations (with some exceptions in energy sector). If you commute long distances or run a vehicle-dependent business, oil is part of your personal finance equation.