WTI crude oil and its impact on Costa Rica
Learn why the international oil price matters for the colon, inflation, and your daily expenses.
What is WTI?
West Texas Intermediate (WTI) is the benchmark price for crude oil in the Americas. Traded on the New York Mercantile Exchange (NYMEX), it is one of the two main global oil benchmarks alongside Brent crude.
The price is quoted in USD per barrel (bbl) — one barrel equals 159 liters.
Why it matters for Costa Rica
Costa Rica imports 100% of its petroleum. This creates a direct chain of effects:
- Oil price rises -> higher fuel costs at the pump
- Higher fuel costs -> more expensive transportation and logistics
- More expensive logistics -> higher prices for goods (inflation)
- Increased imports in USD -> more demand for dollars in the FX market
- More dollar demand -> depreciation pressure on the colon
The reverse is also true: falling oil prices ease inflationary pressure and reduce FX demand.
Reading the chart
The WTI chart shows daily closing prices over 2 years. Key patterns to watch:
- Sustained rise: Could signal upcoming fuel price adjustments and inflationary pressure
- Sharp spike: Often driven by geopolitical events (conflicts, OPEC decisions, sanctions)
- Steady decline: May indicate global demand slowdown or increased supply
RECOPE and fuel pricing
In Costa Rica, RECOPE (Refinadora Costarricense de Petroleo) is the state-owned petroleum refinery that imports and distributes fuel. RECOPE adjusts domestic fuel prices monthly based on international oil prices and the exchange rate. This means WTI movements take roughly 30-60 days to reach the pump.
Data source
The WTI price data comes from FRED (Federal Reserve Economic Data), maintained by the Federal Reserve Bank of St. Louis. The series tracks the daily spot price (not futures) for physical delivery of WTI crude.