WTI remains stronger near $61.00 as supply concerns rise

WTI moves higher on slowing Russian fuel Oil exports and supply disruptions in key US producing regions.
Russian Oil exports to Asia totaled about 1.2 million tons in January, heading for a third straight monthly decline.
Middle East tensions stayed in focus after the US deployed a carrier strike group amid rising Iran tensions.

Akhtar Faruqui FXStreet

West Texas Intermediate (WTI) Oil price extends its gains for the second successive session, trading around $61.10 during the early European hours on Monday. Crude prices move higher, supported by slowing Russian fuel Oil exports and supply disruptions in key United States (US) producing regions.

Reuters, citing ship-tracking data from Kpler, reported on Friday that Russian fuel Oil exports to Asia have totaled around 1.2 million metric tons (about 246,000 bpd) so far in January, putting shipments on course for a third consecutive monthly decline. Meanwhile, Russian refined product output has fallen since October after several refineries shut for repairs following Ukrainian drone attacks.

Additionally, reduced Venezuelan shipments to China following the US capture of President Nicolas Maduro may tighten Asia’s supply of high-sulphur fuel Oil, used both as refinery feedstock and bunker fuel, lending support to prices.

“Oil prices are getting a lift this week from signs of US production disruptions, alongside persistent geopolitical risks, despite expectations of an oversupplied 2026,” said Priyanka Sachdeva, senior market analyst at Phillip Nova, according to Reuters.

Developments in the Middle East stayed in focus after the US deployed an aircraft carrier strike group to the region as part of a broader military buildup amid rising tensions with Iran, stoking fears of an escalation that could disrupt energy flows.

Trade concerns also persisted after US President Donald Trump threatened to impose 100% tariffs on Canada if it finalizes a deal with China. Canadian Prime Minister Carney later said Ottawa has no plans to pursue such an agreement with Beijing, noting the recent deal only lowers tariffs in a limited number of sectors.

WTI Oil FAQs

What is WTI Oil?

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.

What factors drive the price of WTI Oil?

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.

How does inventory data impact the price of WTI Oil

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.

How does OPEC influence the price of WTI Oil?

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.

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