WTI Crude Oil advances on softer US jobs data and lingering Middle East tensions
By Ghiles Guezout
Updated: 3 Jul 2026
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West Texas Intermediate (WTI) trades around $68.65 at the time of writing on Friday, up 0.30% on the day, recovering part of its recent losses as the US Dollar (USD) weakens following softer-than-expected US employment data.
- WTI climbs toward $68.65 on Friday, supported by a weaker US Dollar following disappointing US employment data.
- Markets continue to monitor US-Iran negotiations, while persistent regional tensions remain a potential source of support for Oil prices.
- Commerzbank believes the recent decline in Oil prices reflects expectations of a future supply surplus rather than evidence of an actual oversupplied market.
West Texas Intermediate (WTI) trades around $68.65 at the time of writing on Friday, up 0.30% on the day, recovering part of its recent losses as the US Dollar (USD) weakens following softer-than-expected US employment data.
Thursday’s Nonfarm Payrolls (NFP) report showed that the US economy added just 57K jobs in June, well below market expectations of 110K. The weaker labor market data reduced expectations of monetary tightening by the Federal Reserve (Fed), weighing on the US Dollar and mechanically supporting USD-denominated commodities, including Oil.
Developments in the Middle East continue to dominate market sentiment. Indirect talks between the United States (US) and Iran remain ongoing, although the latest negotiations in Doha failed to deliver a lasting agreement. US President Donald Trump nevertheless said on Thursday that Iran had "accepted nearly everything we require," while Qatar reported positive progress in the discussions.
At the same time, geopolitical risks remain elevated. Iran’s joint military command warned that any US interference in the Strait of Hormuz would trigger a "decisive and swift response."
According to Commerzbank analysts, the recent weakness in Oil prices appears to reflect market expectations rather than a deterioration in underlying fundamentals. The bank argues that investors are pricing in a future supply surplus, even though currently available data does not yet point to an actual oversupplied market. Commerzbank also noted that upcoming Energy Information Administration (EIA) forecasts and future Organization of the Petroleum Exporting Countries and allies (OPEC+) production decisions will remain key catalysts for 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.
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