West Texas Intermediate (WTI) Oil price inches lower after modest gains in the previous session, trading around $60.10 per barrel during the Asian hours on Thursday. Crude Oil prices move little as traders stay cautious following the conclusion of the United States (US)-China meeting.
US President Donald Trump and Chinese President Xi Jinping held a crucial meeting on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit in South Korea. President Trump was expected to push China to curb its purchases of Russian Oil, following US sanctions on two major producers from Moscow. Both leaders were also expected to discuss a wide range of issues, from fentanyl tariffs to rare-earth to soybean trade to the TikTok deal.
US sanctions on Russian Oil producer Rosneft have reignited debate in Germany over nationalizing the company’s operations there, including a key refinery that supplies most of Berlin’s fuel. The US Treasury announced on Wednesday that Rosneft’s German subsidiary has been granted a sanctions exemption until April 2026. While Berlin continues to seek a permanent waiver, German officials are also considering seizing the assets and selling them to a foreign investor, Reuters cited two sources familiar with the discussions.
Meanwhile, OPEC+, the Organization of the Petroleum Exporting Countries and its allies like Russia, is considering a modest output increase in December as it continues gradual monthly hikes to regain market share. Eight OPEC+ members have increased output targets by more than 2.7 million barrels per day (bpd) over several months, remaining under half the 5.85 million bpd cumulative cuts implemented in previous years.
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.
