West Texas Intermediate (WTI) US Oil trades around $59.30 on Friday at the time of writing, posting a 0.50% daily gain as investors adopt a cautious stance while monitoring ongoing efforts toward a Russia-Ukraine peace agreement.
Market participants note that any potential breakthrough could eventually ease sanctions on Russian Crude Oil and release some restricted supply, although meaningful changes would likely be gradual and contingent on a concrete deal.
Russian President Vladimir Putin indicated that proposals conveyed by US President Donald Trump could help shape a future security framework, expressing openness to further negotiations. On the Ukrainian side, President Volodymyr Zelenskiy confirmed that Ukrainian and US delegations will meet this week to deepen the Geneva-based framework aimed at stabilizing the situation and establishing security guarantees.
Markets are also turning their attention to Sunday’s virtual OPEC+ meeting. The group is expected to maintain its plan to pause production increases in early 2026, while discussions may shift toward a broader review of long-term member capacity.
Oil prices also benefit from a more accommodative monetary outlook. Expectations of easing from the Federal Reserve (Fed) have risen sharply. According to the CME FedWatch tool, markets now assign over an 87% chance of a 25-basis-point rate cut in December, compared with 39% a week ago. This prospect weighs on the US Dollar (USD), adding support to the USD-dominated Crude Oil.
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.