WTI eases as Kazakhstan's Tengiz Oil field resumes production, OPEC+ meeting eyed
- WTI eases back below $61 as oversupply concerns resurface.
- Kazakhstan’s Tengiz Oil field resumes production after outages.
- OPEC+ meeting in focus as traders await output guidance.
West Texas Intermediate (WTI) pares earlier gains on Monday as traders weigh oversupply concerns against persistent geopolitical tensions. At the time of writing, WTI is trading around $60.70, easing from an intraday high near $61.60 and down nearly 0.65% on the day.
The mild pullback follows reports that Kazakhstan’s Tengiz oil field is preparing to restore output after recent outages disrupted flows. Kazakhstan’s Energy Ministry said on Monday that production at the country’s largest oil field has resumed, according to Reuters.
The development is shifting the focus back toward the broader supply-heavy global Oil backdrop. However, geopolitical risks continue to provide underlying support after reports that the US aircraft carrier USS Abraham Lincoln and accompanying warships have arrived near Iran, which fueled concerns over a possible US strike, with Tehran warning of retaliation.
Traders are also watching developments in US-Canada trade relations after US President Donald Trump reignited trade tensions over the weekend, threatening to impose 100% tariffs on Canadian goods if Ottawa moves ahead with a trade deal with China.
The rhetoric has added another layer of uncertainty to the oil market, given that Canada is the largest foreign supplier of Crude to the United States (US).
Attention is gradually turning to the upcoming Organization of the Petroleum Exporting Countries and allies (OPEC+) meeting on February 1, where the group’s key producers are widely expected to maintain the current pause on output increases, as they assess demand conditions and the supply outlook for the rest of 2026.
Against this backdrop, WTI is likely to remain range-bound in the near term, as traders await clarity from OPEC+ while balancing persistent oversupply concerns against a still-elevated geopolitical risk premium.
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
Vishal Chaturvedi
FXStreet
I am a macro-focused research analyst with over four years of experience covering forex and commodities market. I enjoy breaking down complex economic trends and turning them into clear, actionable insights that help traders stay ahead of the curve.
