West Texas Intermediate (WTI) Oil price extends its losses for the second successive session, trading around $57.80 per barrel during the European hours on Wednesday. WTI price fell 1.70% in the previous session as prospects for a Ukraine-Russia peace agreement improved.
Ukrainian President Volodymyr Zelenskiy signaled readiness to move forward with a US-backed plan to end the war and said he was prepared to discuss remaining contentious issues with US President Donald Trump, alongside Europe’s key allies.
A potential peace agreement could pave the way for easing Western sanctions on Russia, whose major Oil producers have been heavily restricted. This would likely boost supply and intensify concerns about oversupply at a time when global output is already exceeding demand.
Oil prices may remain under pressure as oversupply risks grow. According to Reuters, Commerzbank pointed out that sanctions on Russian Oil majors Rosneft and Lukoil, along with restrictions on selling products refined from Russian crude into Europe, have led some Indian refiners to reduce their intake of Russian Oil. This has pushed Russian exports lower and increased the volume of crude held in floating storage. These barrels could swiftly return to the market if a peace agreement results in sanctions on Rosneft and Lukoil being lifted.
The American Petroleum Institute (API) reported on Tuesday that US Weekly Crude Oil Stock fell by 1.9 million barrels for the week ending November 21, 2025, after a 4.4-million-barrel build the week before. This marks the first draw after three consecutive weekly increases.
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.