Select Language

WTI drifts higher above $66.00 on brewing Middle East tension

blockHeadVisual
  1. HOME
  2. Get information
  3. World FX news
  4. WTI drifts higher above $66.00 on brewing Middle East tension

World FX news

search
Breaking news

WTI drifts higher above $66.00 on brewing Middle East tension

  • X
  • facebook
  • LINE
  • RSS
  • X
  • facebook
  • LINE
  • RSS
New update 2025.07.18 09:47
WTI drifts higher above $66.00 on brewing Middle East tension

update 2025.07.18 09:47

  • WTI price rises to $66.15 in Friday's early Asian session. 
  • Simmering tensions in the Middle East and strong summer demand boost the WTI price. 
  • Tariff uncertainty might cap the WTI's upside. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $66.15 during the early Asian trading hours on Friday. The WTI edges higher amid renewed geopolitical tensions in the Middle East, raising concerns about tighter global oil supplies. 

Reuters reported late Thursday that a drone attack on Kurdistan targeted a Norwegian-operated oil and gas firm in the Tawke, Zakho administration area of northern Iraq, leading to a suspension of production. At this time, the US has refrained from any major counterattacks. Therefore, the situation remains relatively peaceful. Any signs of escalation in this region could raise fears of tight global supply, which might provide some support to the WTI price.

US crude oil inventories fell last week, suggesting robust summer demand. The US Energy Information Administration (EIA) weekly report showed crude oil stockpiles in the US for the week ending July 11 fell by 3.859 million barrels, compared to a rise of 7.07 million barrels in the previous week. The market consensus estimated that stocks would decline by 1.8 million barrels.  

Nonetheless, the uncertainty caused by US President Donald Trump's tariff war might cap the upside for the WTI price. Trump said on Wednesday that he intends to send a letter telling more than 150 trade partners what tariff rate they will face. High tariffs could slow down the economy and thereby hurt oil and energy demand, weighing on the oil prices. 

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

 : 2025.07.18

Update

Last updated

 : 2025.07.18

Related articles

Show more

Writer

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?
No loading Yes loading

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.

Previous article

prev

Japan's National CPI rises 3.3% YoY in June, Core CPI climbs as expected

Next article

PBOC sets USD/CNY reference rate at 7.1498 vs. 7.1461 previous

prev

Most viewed

China's Commerce Minister: China-US economic and trade relations have gone through storms

China's Commerce Minister Wang Wentao said on Friday that the economic and trade relations between the Unites States have gone through storms, but remain important to each other.
New
update2025.07.18 12:45

EUR/USD surges above 1.1600 due to easing risk aversion following dovish Fedspeak

EUR/USD recovers its recent losses registered in the previous day, trading around 1.1630 during the Asian hours on Friday. The pair appreciates as the US Dollar (USD) loses ground amid easing risk sentiment following the dovish remarks from Federal Reserve (Fed) officials.
New
update2025.07.18 12:34

GBP/USD rises to near 1.3450 due to improved market sentiment, UoM Consumer Sentiment eyed

GBP/USD gains ground after registering small losses in the previous session, trading around 1.3440 during the Asian hours on Friday. The pair appreciates as the US Dollar (USD) edges lower due to dovish remarks from the Federal Reserve (Fed) officials.
New
update2025.07.18 12:02

Japanese Yen moves little after National CPI; remains close to multi-month low against USD

The Japanese Yen (JPY) edges higher against its American counterpart during the Asian session on Friday, though it lacks bullish conviction and remains close to an over three-month low touched earlier this week.
New
update2025.07.18 11:29

Australian Dollar advances as market sentiment improves due to dovish Fedspeak

The Australian Dollar (AUD) advances on Friday, recovering its more than 0.5% losses from the previous session. The AUD/USD pair appreciates as the US Dollar (USD) faces challenges due to dovish remarks from the Federal Reserve (Fed) officials.
New
update2025.07.18 11:25

NZD/USD gathers strength above 0.5950 on softer US Dollar

The NZD/USD pair attracts some buyers to around 0.5955 during the Asian trading hours on Friday. The New Zealand Dollar (NZD) strengthens against the Greenback as China's second-quarter (Q2) growth beats estimates.
New
update2025.07.18 10:58

PBOC sets USD/CNY reference rate at 7.1498 vs. 7.1461 previous

On Friday, the People's Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.1498 as compared to the previous day's fix of 7.1461 and 7.1736 Reuters estimate.
New
update2025.07.18 10:15

WTI drifts higher above $66.00 on brewing Middle East tension

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $66.15 during the early Asian trading hours on Friday. The WTI edges higher amid renewed geopolitical tensions in the Middle East, raising concerns about tighter global oil supplies. 
New
update2025.07.18 09:46

Japan's National CPI rises 3.3% YoY in June, Core CPI climbs as expected

Japan's National Consumer Price Index (CPI) rose by 3.3% YoY in June, compared to the previous reading of 3.5%, according to the latest data released by the Japan Statistics Bureau on Friday.
New
update2025.07.18 08:32

Silver Price Forecast: XAG/USD edges above $38.00 as bulls await catalyst

Silver price advanced on Thursday, 0.55% as the Greenback posted solid gains during the North American session, even though Wall Street finished the session with gains.
New
update2025.07.18 08:20

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.

arw
  • 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
Line

Line
Facebook

Facebook
X

Twitter
Cancel