WTI remains below $65.00 as US crude inventories build last week
- WTI falls as EIA reported an 8.53 million-barrel surge in US inventories last week.
- Crude downside limited by rising US–Iran tensions; Trump reports no firm decisions after Netanyahu meeting.
- OPEC kept 2026 and 2027 demand growth forecasts unchanged at 1.38 and 1.34 million bpd.
West Texas Intermediate (WTI) Oil price edges lower after registering over 1% gains in the previous session, trading around $64.80 during the Asian hours on Thursday. Crude Oil prices face pressure after the US Energy Information Administration (EIA) Crude Oil Stocks Change showed that US crude inventories jumped by 8.53 million barrels last week. At 428.8 million barrels, crude stockpiles remain roughly 3% below the five-year average for this time of year.
Crude Oil’s downside may be limited amid escalating US–Iran tensions. US President Donald Trump said no firm decisions were made during his meeting with Israeli Prime Minister Benjamin Netanyahu on Wednesday, but negotiations with Iran would continue. However, details regarding the timing and location of the next round of talks have yet to be confirmed.
President Trump stated on Tuesday that he was considering deploying a second aircraft carrier to the Middle East if an agreement with Iran is not reached, even as Washington and Tehran prepare to resume discussions.
Reuters cited Rystad Energy, saying in a note that “a resilient labor market underpins demand for transport fuels, petrochemicals and power generation, reducing downside risks to US consumption at a time when macro sentiment had turned cautious.” The note added that “labor market stability reinforces the view that the demand picture is firming up.”
The US Bureau of Labor Statistics (BLS) reported that Nonfarm Payrolls (NFP) increased by 130,000 in January, following a revised 48,000 gain in December (previously 50,000), and surpassed market expectations of 70,000. Meanwhile, the Unemployment Rate edged down to 4.3% from 4.4%.
OPEC (Organization of the Petroleum Exporting Countries) left its demand growth forecasts for 2026 and 2027 unchanged at 1.38 million bpd and 1.34 million bpd, respectively, while maintaining its outlook for non-OPEC supply. The International Energy Agency (IEA) is due to release its monthly report later today, which could once again flag a potential global surplus.
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
Akhtar Faruqui
FXStreet
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.
