WTI holds losses near $93.50 as supply concerns ease
- WTI eased after Iraq agreed to resume exports via Turkey’s Ceyhan port.
- API reported US crude inventories rose 6.6 million barrels, reversing the prior week’s 1.7 million-barrel draw.
- The US targeted Iranian coastal sites near the Strait of Hormuz over anti-ship missile threats to global shipping.
West Texas Intermediate (WTI) oil price has given up its recent gains from the previous session, trading around $93.20 per barrel during the Asian hours on Wednesday. Traders are awaiting the US Energy Information Administration (EIA) report due later on Wednesday for fresh cues on supply trends.
Crude oil prices softened after Iraq reached an agreement to resume exports through Turkey’s Ceyhan port, easing concerns over disruptions linked to the Iran conflict. Iran has also permitted safe passage for certain vessels based on their affiliations, further calming immediate supply fears.
The United States has intensified efforts to reopen the Strait of Hormuz, though allied nations have so far declined President Donald Trump’s request to help secure shipping through the vital route.
Meanwhile, the American Petroleum Institute (API) reported that US crude inventories rose by 6.6 million barrels for the week ending March 13, reversing the previous week’s 1.7 million-barrel draw. This increase came against market expectations for a 600,000-barrel decline.
Despite the recent pullback, oil prices could regain upward momentum amid escalating geopolitical tensions. The US military recently targeted Iranian coastal sites near the Strait of Hormuz over concerns about anti-ship missile threats to global shipping, according to Reuters. The BBC also reported that Israel claimed responsibility for strikes that killed senior Iranian officials, including Ali Larijani and Basij chief Gholamreza Soleimani.
Adding to concerns, Iran reportedly launched attacks on oil and gas production facilities in the United Arab Emirates and Iraq, marking a significant escalation by directly targeting upstream infrastructure rather than refineries or storage sites, according to The Guardian.
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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