- WTI price gains ground due to potential supply disruptions following Trump’s tariff threats.
- Trump stated to plan on Thursday evening on the 25% tariff on Canadian Oil, but no updates have emerged.
- Traders await the OPEC+ meeting on February 3, as Trump pressures the group, particularly Saudi Arabia, to reduce oil prices.
West Texas Intermediate (WTI) crude Oil price appreciates after two days of losses, trading around $73.00 during Asian market hours on Friday. The rise in crude Oil prices comes amid concerns over potential supply disruptions as markets assess the risk of a 25% tariff imposed by US President Donald Trump on Mexico and Canada—the two largest crude exporters to the United States (US). These tariffs, which could take effect on February 1, are intended to pressure both countries to halt fentanyl shipments across US borders.
However, it remains uncertain whether crude Oil will be included in the tariffs. On Thursday afternoon, Trump stated that he would likely make a decision that evening on whether to apply the 25% tariff to Canadian Oil, but no further updates have emerged. In 2023, Canada supplied 3.9 million barrels per day (bpd) of crude to the US, accounting for a significant portion of the 6.5 million bpd total imports, while Mexico contributed 733,000 bpd, according to data from the US Energy Information Administration. Trump also indicated that China, the world’s largest oil importer, would face tariffs, with his administration actively working on their implementation.
"Sanctions on Russia, stopping purchases of Venezuelan Oil, and applying maximum pressure on Iran will elevate the geopolitical risk premium on Oil," said ANZ Bank analyst Daniel Hynes. "This could be further impacted by efforts to refill the strategic petroleum reserve, adding to Oil demand."
Meanwhile, investors are looking ahead to the OPEC+ meeting on February 3, as Trump urges the group—particularly Saudi Arabia—to lower Oil prices. Market participants expect OPEC+ to maintain its current supply policy, with any additional production increases likely to begin in April. Kazakhstan’s energy minister stated on Wednesday that the group will discuss Trump's plans to boost US oil production and take a unified stance on the matter during next week’s meeting.
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0900, eyes on tariffs
EUR/USD keeps the bid bias well in place so far on Tuesday, hovering above the 1.0900 barrier on the back of fresh downside pressure in the Greenback amid investors' hope of trade negotiations.
GBP/USD looks bid and approaches 1.2800
GBP/USD maintains its fresh bullish bias in the upper-1.2700s, printing marked gains in response to some loss of impulse in the US Dollar, which in turn lent fresh legs to the risk-associated universe on Tuesday.
Gold trims gains and breaches $3,000
Gold prices now lose some upside momentum and slip back below the critical $3,000 mark per troy ounce. Tuesday's recovery in the yellow metal comes on the back of the weaker US Dollar as well as steady trade tensions, while higher US yields continue to cap gains.
Who is Satoshi? Crypto lawyer sues DHS to reveal Satoshi Nakamoto's identity
James Murphy, a cryptocurrency lawyer popularly known to his followers on X as "MetalLawMan," has filed a lawsuit in a D.C. District Court against the Department of Homeland Security (DHS). He intends to uncover the real face or faces behind Satoshi Nakamoto, the pseudonymous creator of Bitcoin.
The Fed is looking at a hefty price level
We are still in thrall to tariffs, the faux-macro “data” driving markets. The WSJ editorial board advised other countries to take their tariffs to zero so that Trump’s “reciprocal” tariffs will have to be zero, too. Cute, but no cigar.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.