WTI rises to near $102.50 amid rising supply concerns from Middle East
- WTI heads for a second weekly gain as US-Iran tensions persist and Hormuz reopening prospects fade.
- Trump said the Iran port blockade will continue, raising concerns the Strait of Hormuz may remain closed.
- US Route 66 centennial travelers paid $6 per gallon in California, a two-year high.
West Texas Intermediate (WTI) oil price inches higher after registering 2.7% losses in the previous day, trading around $102.40 per barrel during the Asian hours on Friday. Crude oil prices are set for a second weekly gain, amid dimming prospects for a US-Iran peace deal and expectations that the Strait of Hormuz would not reopen anytime soon.
Bloomberg reported on Thursday that US President Donald Trump said he would continue the naval blockade of Iranian ports, amid concerns that the strategically vital Strait of Hormuz may not reopen in the near term. Trump also criticized congressional attempts to curb his war powers, including a recent Senate proposal that was rejected earlier in the day.
Iran’s Supreme Leader Mojtaba Khamenei further dimmed prospects for a deal, vowing not to give up the Islamic Republic’s nuclear or missile capabilities and signaling that Tehran would maintain control over the strait.
Meanwhile, a new Ukrainian drone strike targeted Russia’s Black Sea port of Tuapse—the fourth such attack in the past week—igniting a fire at the sea terminal but causing no reported injuries. Tuapse has faced repeated assaults, particularly on its oil terminal facilities, according to Reuters.
Motorists and travelers marking the 100th anniversary of US Route 66 throughout 2026 were paying $6 per gallon for gasoline in California on Thursday, the highest level in two years and an emerging political flashpoint ahead of upcoming elections.
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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