Select Language

WTI retakes $74.00; remains close to multi-month top as Iran-Israel conflict fuels supply concerns

Breaking news

WTI retakes $74.00; remains close to multi-month top as Iran-Israel conflict fuels supply concerns

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.06.19 16:23
WTI retakes $74.00; remains close to multi-month top  as Iran-Israel conflict fuels supply concerns

update 2025.06.19 16:23

  • WTI attracts fresh buyers on Thursday amid rising geopolitical tensions in the Middle East.
  • The Fed's hawkish pause lifts the USD to a one-week high and might cap the black liquid.
  • Trade-related uncertainties further warrant caution before placing aggressive bullish bets.

West Texas Intermediate (WTI) US Crude Oil prices regain positive traction on Thursday amid concerns that a broader conflict in the Middle East could influence global supply. As the Israel-Iran conflict enters its seventh day, media reports suggest that US President Donald Trump has approved attack plans for Iran, but is holding off to see if Tehran will abandon its nuclear program.

The Israeli Air Force bombed Iran's Arak heavy water reactor this morning, along with dozens of other military sites overnight. In response, Iran launched a fresh barrage of ballistic missiles, which struck Soroka Hospital in Beersheba in southern Israel, and Holon and Ramat Gan in central Israel. This, along with potential US involvement, raises the risk of an all-out war in the Middle East and acts as a tailwind for Crude Oil prices.

Meanwhile, the US Federal Reserve kept its interest rates steady on Wednesday and projected two rate cuts by the end of 2025. Policymakers, however, forecasted only one 25-basis points rate cut in each of 2026 and 2027. This, in turn, assists the US Dollar (USD) to build on its recent recovery from a three-year low and climb to over a one-week high, which acts as a headwind for USD-denominated commodities, including Oil prices.

Furthermore, the uncertainty surrounding Trump's trade policies led to concerns about reduced global economic growth, which could potentially dent fuel demand. This might further hold back traders from placing aggressive bullish bets and positioning for a further appreciating move for the black liquid. Nevertheless, Crude Oil prices remain close to a multi-month top and might continue to draw support from rising geopolitical tensions.

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.


Date

Created

 : 2025.06.19

Update

Last updated

 : 2025.06.19

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

WTI Crude Oil rises as Red Sea attacks overshadow EIA inventory build

WTI Crude Oil is trading higher on Wednesday as attacks in the Red Sea overshadow reports of rising supply.
New
update2025.07.10 01:45

Trump announces another batch of sweeping tariffs

US President Donald Trump hit the ground running on Wednesday, unveiling his next list of countries that will be facing double-digit tariffs on August 1 if satisfactory trade deals are not delivered. Trump also reiterated his warnings of an additional 10% tariff on any BRICS-aligned country.
New
update2025.07.10 01:41

EUR/CHF weakens near multi-week range low as ECB flags broader global risks

The Euro (EUR) weakens against the Swiss Franc (CHF) on Wednesday, with EUR/CHF trading near the lower boundary of its multi-week range around 0.9318. The cross remains under pressure following fresh comments from European Central Bank (ECB) officials that added to the cautious mood around the Euro.
New
update2025.07.10 00:35

EUR/GBP declines as Pound strengthens on UK-US trade deal, EU faces higher tariffs

The EUR/GBP tumbles during the North American session, down by a 0.18% as risk appetite improved due to most US equity indices registering gains as traders brace for the release of the latest Federal Reserve monetary policy meeting minutes. At the time of writing, the cross trades at 0.8622.
New
update2025.07.10 00:25

President Trump: Our Fed rate is at least 3 points too high

Another round of the White House-Federal Reserve dispute saw President Donald Trump urge the Fed to decrease its interest rate by a minimum of 3 percentage points, reiterating his request for the bank to lower rates to alleviate the cost of servicing the nation's debt.
New
update2025.07.09 23:52

EUR/USD stalls ahead of Fed Minutes and major US Treasury auction

The Euro (EUR) is trading flat against the US Dollar (USD) on Wednesday as investors turn cautious ahead of key US economic events.
New
update2025.07.09 23:45

British Pound flattens against US Dollar amid BoE warnings on global financial risks

The British Pound (GBP) flattens against the US Dollar (USD) on Wednesday, halting its three-day losing streak despite a steady Greenback as traders react to the Bank of England's (BoE) latest Financial Stability Report.
New
update2025.07.09 23:25

Fed Minutes to offer clues on next rate cuts amid tariff turmoil

The Minutes of the United States (US) Federal Reserve's (Fed) June 17-18 monetary policy meeting will be published on Wednesday at 18:00 GMT.
New
update2025.07.09 22:15

EUR/JPY retreats from YTD high amid trade tensions and overbought signals

The Euro (EUR) is slipping against the Japanese Yen (JPY), easing from its recent year-to-date high of 172.28 reached on Wednesday amid fresh concerns over potential US tariffs targeting Japan.
New
update2025.07.09 22:13

Silver Price Forecast: XAG/USD marks third daily decline, pressured by firm US Dollar

Silver (XAG/USD) is trading near $36.40 on Wednesday, marking its third consecutive daily decline, as a stronger US Dollar and rising US Treasury yields continue to pressure precious metals.
New
update2025.07.09 21:48

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel