WTI holds ground near $59.00 as eyes on Russia-Ukraine peace talks
- WTI price remains steady as traders adopt caution due to the Russia-Ukraine peace deal.
- Markets focus on Sunday’s virtual OPEC+ meeting, where the group is expected to maintain its early-2026 output pause plan.
- Oil prices gain on mounting expectations of a Fed rate cut in December.
West Texas Intermediate (WTI) Oil price remains in the positive territory for the third successive session, trading around $59.00 per barrel during the Asian hours on Friday. Crude Oil prices edge higher as traders monitor progress in Russia-Ukraine peace talks.
Russian President Vladimir Putin indicated that proposals from US President Donald Trump could help shape future agreements and expressed readiness for further negotiations. A breakthrough could eventually ease sanctions on Russian crude and unlock restricted supplies, though skepticism remains about any near-term deal, and even with one, a ramp-up in shipments would take time.
Ukrainian President Volodymyr Zelenskiy noted that Ukrainian and US delegations will meet this week to refine a framework discussed in Geneva aimed at securing peace and establishing security guarantees for Kyiv.
Markets are also focused on Sunday’s virtual OPEC+ meeting, where the group is expected to keep its plan to pause output increases in early 2026, while attention may shift toward a longer-term review of member capacity.
Oil prices are finding additional support from expectations of Federal Reserve rate cuts, which could bolster economic activity and fuel demand. According to the CME FedWatch Tool, markets now price in over an 87% chance of a 25 bps cut at the December meeting, up sharply from 39% a week earlier. Traders also anticipate three more cuts by the end of 2026 after reports that White House National Economic Council Director Kevin Hassett is the frontrunner for the next Fed chair.
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.
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