WTI price dropped by about 3% on Thursday due to escalating fears of a global supply surplus. Trump commented, “I think we are getting very close to a deal with Iran. Iran has agreed to the terms.” US EIA reported a substantial crude inventory increase of 3.5 million barrels last week, raising stockpiles to 441.8 million barrels. West Texas Intermediate (WTI) Oil price fell by approximately 3% on Thursday, extending the previous session’s losses of over 1%. WTI price is hovering around $60.70 per barrel during European trading hours.
The decline in crude Oil prices comes amid growing concerns over a global supply glut. Sentiment was further impacted by US President Donald Trump’s remarks on Thursday, stating, “I think we are getting very close to getting a deal with Iran. Iran has agreed to the terms; we want them to succeed. We were losing the Middle East due to the past administration.”
These comments followed Trump’s warning just a day earlier of applying “maximum pressure” on Tehran. On Wednesday, Washington imposed new sanctions targeting Iran’s domestic ballistic missile production efforts, according to the US Treasury Department. This followed sanctions announced Tuesday on roughly 20 companies involved in a network allegedly facilitating Iranian oil shipments to China.
On the diplomatic front, Iranian official Ali Shamkhani said Wednesday that Tehran is open to signing a nuclear agreement with President Trump. NBC reported that the proposal includes Iran’s commitment to never develop nuclear weapons in exchange for the immediate lifting of all US sanctions. The prospect of a deal has raised expectations that Iranian oil could soon reenter global markets. Saudi Arabia also expressed strong support for the US-Iran negotiations, voicing optimism for a favorable outcome.
Adding to supply-side pressures, the US Energy Information Administration (EIA) reported a significant crude inventory build of 3.5 million barrels last week, bringing total stockpiles to 441.8 million barrels. This far exceeded analysts’ expectations for a 1.1 million-barrel draw, according to a Reuters poll. Similarly, API industry data showed a 4.3 million-barrel increase in crude inventories.
Meanwhile, OPEC revised its 2025 forecast for Oil supply growth from the US and other non-OPEC+ producers, lowering it to 800,000 barrels per day (bpd) from the previous estimate of 900,000 bpd. Despite this adjustment, the group’s ongoing plans to boost output have continued to weigh on 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.
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