WTI drifts higher above $88.00 as Trump denies Iran sanctions relief
- WTI price gains ground to near $88.30 in Wednesday’s early European session.
- Trump denied he is willing to ease sanctions on Iran.
- Crude oil inventories rose by 1.019 million barrels in the week ended September 25, API said.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $88.30 during the early European trading hours on Wednesday. WTI edges higher after US President Donald Trump denied he would be willing to ease sanctions on Iran. Traders brace for the release of the Energy Information Administration (EIA) crude oil stockpiles report later on Wednesday.
Axios reported that Qatar’s efforts to mediate between the US and Iran have failed to yield a breakthrough, with neither side willing to budge. The lack of progress has raised concerns that the diplomatic stalemate could eventually lead to renewed tensions.
Trump also denied an Axios report that he provided Iran sanctions relief and released frozen Iranian funds in return for concrete Iranian steps on the nuclear program.
"Continued uncertainty over sanctions relief and negotiations is keeping a geopolitical risk premium embedded in prices," said Sugandha Sachdeva, founder of SS WealthStreet, a New Delhi-based research firm. "Improving supplies could cap further gains, but renewed disruption or an escalation in tensions could trigger another rally," she added.
US crude oil inventories rose last week. According to the American Petroleum Institute (API), crude oil stockpiles in the US for the week ending September 25 increased by 1.019 million barrels, compared to a rise of 1.786 million barrels in the previous week.
Oil slide extends as Saudi exports restart and US-Iran talks ease supply fears
Analysts at ING report that oil prices "fell sharply on Wednesday," with Brent "dropping below $99/bbl" and WTI "trading near $89/bbl." They attribute the sell-off to "expectations of rising Saudi crude exports, diplomatic progress between the US and Iran, and a larger-than-expected build in US crude inventories," factors that have collectively "helped ease concerns over Middle East supply disruptions." ING notes that Brent has now declined for "six consecutive sessions, its longest losing streak since August 2025," with "cumulative losses" of "more than 9.5%."
On the supply side, ING highlights that "Saudi Arabia has restarted operations at its East-West pipeline and could soon resume exports from the Yanbu terminal." The route, which "bypasses the Strait of Hormuz," has a capacity of "around 7m b/d" and is "expected to gradually restore lost export flows, potentially increasing global crude supplies in the coming weeks."
Geopolitics remain central to the move, with ING pointing out that President Donald Trump has described recent discussions with Iranian officials as "very productive," a development that is "raising hopes for further diplomatic progress and reducing fears of prolonged supply disruptions in the region." ING adds that "despite the recent correction, oil prices remain more than 60% higher year-to-date," underscoring that the latest pullback comes against the backdrop of a still-elevated price environment.
Technical Analysis: WTI retains a positive bias above the 100-day SMA
In the daily chart, WTI US Oil holds a constructive near-term tone as price remains above the 100-day simple moving average (SMA) and the lower Bollinger Band, suggesting underlying demand after the recent pullback from the highs. However, the advance is moderating, with the Bollinger middle band and the upper band forming overhead resistance, while the Relative Strength Index (RSI) at 45.9 sits in neutral territory and hints at a loss of upside momentum rather than outright bearish pressure.
On the topside, initial resistance aligns with the Bollinger middle band at $93.45, followed by a more significant barrier at the upper band around $101.05. On the downside, the immediate pivot is the current price region itself, with softer support emerging at the lower Bollinger Band at $85.80 and then at the 100-day SMA near $84.75, where buyers are likely to defend the broader bullish structure if a deeper correction unfolds.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
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.
Author
Lallalit Srijandorn
FXStreet
Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.
