WTI consolidates around $69.65-$69.70, below the monthly high set on Thursday

  • WTI oscillates in a narrow trading band and is influenced by a combination of divergent factors.
  • Concerns over slowing fuel demand and rising supply are acting as a headwind for the raw material.
  • Geopolitical risks are still present and stop the bears from opening positions in the black liquid.

US West Texas Intermediate (WTI) crude oil prices struggle to gain significant traction during the Asian session on Friday and remain defensive below the monthly high, around the $70.30 zone touched the previous day . The commodity is currently trading around the $69.65 region, down 0.20% on the day, although it remains on track to post strong weekly gains amid mixed fundamental signals.

The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, decided last week to postpone planned supply increases by three months until April and extend the full elimination of cuts by a year until the end of 2026. This, along with Saudi Arabia’s move to reduce oil prices for Asian buyers highlights concerns about a slowdown in demand, which, in turn, acts as a headwind for the black liquid.

Meanwhile, the International Energy Agency, in its monthly report, expected non-OPEC+ nations to increase supply by about 1.5 million barrels per day (bpd) next year, exceeding the U.S. growth forecast. demand of 1.1 million bpd. This turns out to be another factor limiting crude oil prices. The decline, however, remains muted amid concerns about supply disruptions stemming from tougher sanctions on Russia and Iran.

Additionally, hopes that Chinese stimulus measures could boost demand in the world’s largest oil importer and signs of US economic resilience offer some support to the commodity. The mixed fundamental background, coupled with the recent range-bound price action seen over the past two months or so, warrants some caution before opening aggressive directional positions around crude oil prices.

WTI Oil FAQs


WTI oil is a type of crude oil that is sold in international markets. WTI stands for West Texas Intermediate, one of the three main types that include Brent and Dubai crude. WTI is also known as “light” and “sweet” for 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 through the Cushing facility, considered “the pipeline junction of the world.” It is a benchmark for the oil market and the price of WTI is frequently quoted in the media.


Like all assets, supply and demand are the main factors that determine the price of WTI oil. As such, global growth can be a driver of increased demand and vice versa in the case of weak global growth. Political instability, wars and sanctions can alter supply and impact prices. The decisions of OPEC, a group of large oil-producing countries, is another key price factor. The value of the US Dollar influences the price of WTI crude oil, as oil is primarily traded in US dollars, so a weaker Dollar can make oil more affordable and vice versa.


Weekly oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) influence the price of WTI oil. Changes in inventories reflect the fluctuation of supply and demand. If the data shows a decline in inventories, it may indicate an increase in demand, which would drive up the price of oil. An increase in inventories can reflect an increase in supply, which drives down prices. The API report is published every Tuesday and the EIA report the next day. Their results are usually similar, with a difference of 1% between them 75% of the time. EIA data is considered more reliable since it is a government agency.


OPEC (Organization of the Petroleum Exporting Countries) is a group of 13 oil-producing nations that collectively decide member countries’ production quotas at biannual meetings. Their decisions often influence WTI oil prices. When OPEC decides to reduce quotas, it can restrict supply and drive up oil prices. When OPEC increases production, the opposite effect occurs. OPEC+ is an expanded group that includes ten other non-OPEC member countries, including Russia.

Source: Fx Street

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