WTI tumbles to near $74.00 as Trump urges OPEC to cut oil cost

Source Fxstreet
  • WTI price declines to $74.10 in Friday’s early Asian session. 
  • Trump said he will ask OPEC to lower oil prices.
  • US crude oil inventories dropped by 1.017 million barrels last week, according to the EIA. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $74.10 on Friday. The WTI price extends its downside after US President Donald Trump urged Saudi Arabia and the Organization of the Petroleum Exporting Countries (OPEC) to cut their prices.

Uncertainty over how Trump's proposed tariffs and energy policies could weigh on the WTI price. Trump said on Thursday that he will ask Saudi Arabia and OPEC to lower the price of oil. “I’m also going to ask Saudi Arabia and OPEC to bring down the cost of oil, said Trump durin g his speech at the World Economic Forum in Davos, Switzerland.

Additionally, the expectations of increased US production under President Trump further undermine the WTI price. Earlier this week, Trump declared a national energy emergency and used the authority to rapidly approve new oil, gas, and electricity projects that would normally take years to get permits. 

US crude inventories fell for the ninth consecutive week. The US Energy Information Administration (EIA) weekly report showed crude oil stockpiles in the United States for the week ending January 17 declined by 1.017 million barrels, compared to a fall of 1.962 million barrels in the previous week. The market consensus estimated that stocks would decrease by 2.1 million barrels.

Oil traders will keep an eye on the developments surrounding Trump’s policy announcements. Also, the preliminary US S&P Global Purchasing Managers Index (PMI) for January will be published later on Friday. In case of a weaker-than-expected outcome, this could drag the US Dollar (USD) lower and provide some support to the USD-denominated commodity price.

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.


 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
XRP Price Struggles to Keep Pace: What’s Holding It Back?XRP price struggled to continue higher above the $2.75 zone and dipped. The price is showing a few bearish signs below the $2.60 level. XRP price started a strong upward move above the $2.50 level.
Author  NewsBTC
23 hours ago
XRP price struggled to continue higher above the $2.75 zone and dipped. The price is showing a few bearish signs below the $2.60 level. XRP price started a strong upward move above the $2.50 level.
placeholder
Dogecoin Price Flashes Death Cross Signal as Elon Musk Grills US TreasuryDogecoin price stabilized around the $0.26 level on Wednesday amid a 22% weekly decline as crypto markets tumbled further.
Author  FXStreet
20 hours ago
Dogecoin price stabilized around the $0.26 level on Wednesday amid a 22% weekly decline as crypto markets tumbled further.
placeholder
Top 5 Crypto in 2025: TRX, SUI, AAVE, RBLK & ETH Price Predicted to Soar, Experts SayCrypto markets are heating up, and experts are predicting big things for 2025. While some coins are moving slowly, others are ready​ tо explode. Names like Ethereum and Tron have been around for years, showing steady growth, but newer projects like Sui, Aave, and the latest Rollblock are gaining serious momentum.  With analysts calling for […]
Author  Cryptopolitan
20 hours ago
Crypto markets are heating up, and experts are predicting big things for 2025. While some coins are moving slowly, others are ready​ tо explode. Names like Ethereum and Tron have been around for years, showing steady growth, but newer projects like Sui, Aave, and the latest Rollblock are gaining serious momentum.  With analysts calling for […]
placeholder
Is a Stock Market Crash Looming? Here's What I'm Doing to Protect My Investments Just in Case.While the stock market is still surging right now, investor sentiment may be taking a turn. Around 34% of U.S. investors feel "bearish" about the next six months, according to a we
Author  The Motley Fool
19 hours ago
While the stock market is still surging right now, investor sentiment may be taking a turn. Around 34% of U.S. investors feel "bearish" about the next six months, according to a we
placeholder
Bitcoin Coinbase Flow Pulse Shows Bullish Trend As Institutional Interest Surges – DetailsBitcoin has been struggling to reclaim the $100K mark but remains resilient above the $96K level after a sharp market-wide selloff. Sunday night and early Monday saw a capitulation event, primarily affecting altcoins, leading to extreme volatility. BTC dropped over 9% in 24 hours, shaking investor confidence, only to recover more than 11% the same […]
Author  Bitcoinist
3 hours ago
Bitcoin has been struggling to reclaim the $100K mark but remains resilient above the $96K level after a sharp market-wide selloff. Sunday night and early Monday saw a capitulation event, primarily affecting altcoins, leading to extreme volatility. BTC dropped over 9% in 24 hours, shaking investor confidence, only to recover more than 11% the same […]
goTop
quote