Benchmark Crude Oil

DEFINITION of 'Benchmark Crude Oil'

Benchmark crude oil is crude oil that serves as a pricing reference, making it easier for sellers and buyers to determine the prices of multitudes of crude oil varieties and blends.

BREAKING DOWN 'Benchmark Crude Oil'

According to the Energy Intelligence Group, there exist nearly 200 varieties of crude oil. West Texas Intermediate (WTI), Brent Crude, and Dubai Crude are primarily used as benchmarks, although there are others that are sometimes used as well.