West Texas Intermediate (WTI) Oil price extends gains for the second successive session, trading around $66.80 per barrel during the Asian hours on Tuesday. WTI price remains close to a six-month high of $67.23, reached on February 23.
Crude Oil prices advance on concerns about potential supply disruptions amid fears of military escalation in the Middle East. Oman confirmed that a third round of talks between Washington and Tehran will take place this week in Geneva, with US envoys Steve Witkoff and Jared Kushner set to meet an Iranian delegation.
US President Donald Trump said Monday he prefers a diplomatic agreement with Iran, as negotiations are scheduled to resume Thursday, but warned of a “very bad day” for Tehran if a nuclear deal is not reached. Trump also rejected reports that the Pentagon is worried about the risks of a prolonged military campaign against Iran.
According to the US Energy Information Administration (EIA), expanding global Oil inventories are likely to weigh on Oil prices. The agency projects global production growth to outpace consumption, resulting in rising stockpiles. Global inventories are forecast to increase by an average of 3.1 million barrels per day in 2026, exceeding the build seen in 2025.
Meanwhile, traders are evaluating renewed trade risks after Trump’s administration signaled plans to introduce new national security tariffs on multiple industries, following a Supreme Court decision that invalidated several of his second-term levies. The proposed measures would be implemented under Section 232 of the Trade Expansion Act of 1962 and remain separate from the 15% global tariff announced on Saturday.
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
Source: https://www.fxstreet.com/news/wti-trades-near-6700-six-month-highs-on-supply-disruption-fears-202602240358
