Select Language

WTI posts modest gain above $65.00 on rising supply concerns

Breaking news

WTI posts modest gain above $65.00 on rising supply concerns

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.09.03 09:15
WTI posts modest gain above $65.00 on rising supply concerns

update 2025.09.03 09:15

  • WTI price trades with mild gains near $65.30 in Wednesday's early Asian session. 
  • The ongoing Russia-Ukraine conflict led to worries over supply-side disruptions among oil traders, supporting the WTI price. 
  • Heightened US tariffs on Indian goods raise concerns about weaker demand, which might cap the WTI's upside.  

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $65.30 during the early Asian trading hours on Wednesday. The WTI edges higher as concerns over supply disruptions increased following strikes on Russian energy sites by Ukraine in the ongoing Russia-Ukraine war. 

Ukrainian President Volodymyr Zelenskyy said that the country intends to strike deep into Russia following a large Russian drone attack that left 60,000 Ukrainians without electricity. According to Reuters calculations, Ukrainian drone attacks have shut down facilities accounting for at least 17% of Russia's oil-processing capacity, or 1.1 million barrels per day. Concerns that intensifying airstrikes in Russia and Ukraine could lead to supply disruptions might boost the WTI price. 

US President Donald Trump threatened to impose additional sanctions on Russia if no progress is made in peace talks with Ukraine. Trump further stated that he would intervene as a third party if necessary.

On the other hand, Trump's doubling of the existing 25% duty on Indian exports raises fears of slowing trade and weaker global demand, which could weigh on the WTI price. The Trump administration imposed the additional tariff to penalize India for buying discounted Russian oil, arguing it indirectly funds Russia's war in Ukraine.

Oil traders will keep an eye on the release of the American Petroleum Institute (API) weekly crude oil stock, which will be published later on Wednesday. The attention will shift to the US Nonfarm Payrolls (NFP) report for August later on Friday. In case of the stronger-than-expected outcome, this could lift the US Dollar (USD) and drag the USD-denominated commodity price lower. 

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

 : 2025.09.03

Update

Last updated

 : 2025.09.03

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

Gold extends rally above $3,550 as weak US JOLTS data lifts Fed cut bets

Gold price extended its gains on Wednesday and is up more than 1%, poised to register record highs during the day, after clearing the mid-point of the $3,500-$3,600 range as economic data from the United States showed the labor market is weakening.
New
update2025.09.04 03:45

Dow Jones Industrial Average left behind as tech stocks rise

The Dow Jones Industrial Average (DJIA) missed the bullish bus on Wednesday, lagging its index peers and slumping over 250 points.
New
update2025.09.04 03:10

Forex Today: The US labour market will be in the spotlight

The US Dollar (USD) traded on the defensive, setting aside gains recorded in the previous day as investors assessed the recent sharp advance in global yields, while further cooling of the US labour market also weighed down on the Greenback.
New
update2025.09.04 03:05

Fed's Kashkari warns that tariffs are pushing up goods prices

Federal Reserve (Fed) Bank of Minneapolis President Neel Kashkari flashed another policy warning sign on Wednesday, cautioning that tariffs are pushing the consumer-facing costs of goods higher, resulting in climbing inflation figures.
New
update2025.09.04 02:47

Fed Governor Prospect Stephen Miran promises to uphold Fed independence if confirmed

Stephen Miran, United States (US) Council of Economic Advisors (CEA) member and US President Donald Trump's pick to fill a recently-vacated seat on the Federal Reserve's (Fed) Board of Governors, swore that he would uphold the Fed's political independence if he were to be confirmed by Congress.
New
update2025.09.04 02:42

UK Chancellor Reeves waves off £50 billion budget deficit forecast

United Kingdom (UK) Chancellor of the Exchequer Rachel Reeves dismissed concerns from Britain's National Institute of Economic and Social Research (NIESR) that the UK government may need to dip into International Monetary Fund (IMF) funding pools in the future if Parliament can't sort out its budge
New
update2025.09.04 01:55

EUR/USD rebounds to 1.1680 as weak US data fuels Fed cut bets

The EUR/USD recovers ground following Tuesday's losses that drove the pair below key support levels around the 50 and 20-day SMAs. A confirmation of weakness in the US labor market by JOLTS data, increased the chances of a rate cut by the Federal Reserve. The pair trades at 1.1679, up 0.37%.
New
update2025.09.04 00:52

GBP/USD rises to 1.3440 as strong UK data offsets US weakness

The GBP/USD advances during the North American session up by 0.39% following the release of economic data from the United States (US). Also, fears of the UK's government being unable to meet its fiscal requirements eased on signs that the economy continued to fare well.
New
update2025.09.04 00:24

Gold extends rally, notches new record-high above $3,560

Gold extended its uptrend in the second half of the day on Wednesday and touched a new record-high above $3,560. At the time of press, XAU/USD was trading near $3,560, rising 0.85% on a daily basis. For the week, Gold is already up more than 3%.
New
update2025.09.03 23:29

Fed's Bostic: Inflation is still the main concern

Atlanta Fed President Raphael Bostic said that high inflation remained the Federal Reserve's main risk, but added that signs of labour market weakness still pointed to a single quarter-point rate cut this year.
New
update2025.09.03 23:14

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