The price of the US benchmark WTI Oil has retraced the decline observed during the Asian market session, bouncing from two-week lows near $56,00, turning positive on the daily chart, and hitting intra-day highs at $57.59 ahead of the US session opening.
Oil prices extended their decline earlier on Monday, following the US intervention in Venezuela and US President Donald Trump’s pledge to open up the Caribbean country’s Oil industry.
Initially, these comments heightened market concerns about an Oil glut, as Venezuela is estimated to hold 17% of global Oil reserves, according to data from the US Energy Information Administration (EIA).
Prices, however, have gradually returned to previous levels as markets come to terms with the fact that the renovation of an underinvested Venezuelan Oil industry will take years and that US companies might not find the incentive to invest billions of dollars in increasing global supply to, ultimately, lower prices.
Meanwhile, the OPEC+ organisation, which includes most of the world’s Oil crude producers, reached an agreement to keep output levels unchanged over the weekend, in an attempt to support price stability, following an 18% depreciation in 2025.
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.