- The price of WTI is reduced to almost 67.15 USD in an early Asian session.
- Oil’s oil entries in the US increased by 7.070 million barrels during the week ended on July 4, 2025, said Eia.
- The profit of surprise in wrestling in the USA and tariff uncertainty charges the price of WTI; Attacks from the Red Sea can support reduce its losses.
West Texas Intermediate (WTI), an American oil reference point, trads around 67.15 USD in the early Asian commercial hours on Thursday. The price of WTI loses its basis among the fears of weakening demand after surprise in American oil reserves.
Last week, oil reserves in the US increased last week on the second in a row, the largest enhance from January. The weekly report of the American Energy Information Administration (OIA) showed that oil reserves in the US during the week ending on July 4 increased by 7.070 million barrels, compared to an enhance of 3.835 million barrels last week. The market consensus estimated that the shares would fall by 2 million barrels.
In addition, uncertainty related to the potential impact of American tariffs on the main trading partners can contribute to the minus WTI. US President Donald Trump presented a fresh round of letters with a request of tariffs on Wednesday. In addition, his announcement by a 50% tariff on copper imports and plans to impose fresh tariffs on semiconductors even more deepened the existing market risk.
On the other hand, growing geopolitical tensions in the Middle East can enhance the price of WTI. Attacks in the Red Sea, a key road to the transport of crude oil from the Middle East to Europe and Asia, were renovated last week. Reuters announced that rescuers pulled out six crew members from the Red Sea on Wednesday, and 15 were still disappeared in the second of two ships sunk in recent days in the attacks that Iran Iran Houthi Militia reported after months of peace.
FAQ of WTI oil
WTI oil is a type of crude oil sold on international markets. WTI means West Texas Intermediate, one of the three main types, including Brent and Dubai oil. WTI is also referred to as “light” and “sweet” due to its relatively low gravity and sulfur content. It is considered high quality oil that can be easily refined. He comes from the United States and distributed through Cushing Hub, which is considered “the intersection of the world pipelines”. This is a reference point for the oil market, and the price of WTI is often cited in the media.
Like all assets, supply and demand are the key factors for the price of WTI oil. As such, global growth can be the driving force of increased demand and vice versa for penniless global growth. Political instability, wars and sanctions can interfere with supply and affect prices. OPEC decisions, groups of the main oil -producing countries, are another key driving force. The value of the American dollar affects the price of WTI oil, because oil is mainly traded in American dollars, which is why a weaker American dollar can make oil more accessible and vice versa.
Weekly reports with oil reserves published by the American Petroleum Institute (API) and the Energy Information Agency (EEA) affect the price of WTI oil. Changes in wrestling reflect the variable supply and demand. If the data shows a decrease in stocks, it may indicate increased demand by raising the price of oil. Higher supplies can reflect the increased supply by lowering prices. The API report is published every Tuesday, and EIA the next day. Their results are usually similar, at a distance of 1% 75% of time. The OEP data is considered more reliable because it is a government agency.
OPEC (organization of oil exporting countries) is a group of 12 pus producing nations, which together determine production amounts for member states at meetings twice a year. Their decisions often affect WTI oil prices. When OPEC decides to reduce the amounts, it can tighten supply by raising oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an extended group, which includes ten additional members outside OPEC, of whom Russia is most noteworthy.
