WTI remains below $68.50 amid easing Middle East tensions
By Akhtar Faruqui
Updated: 3 Jul 2026
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West Texas Intermediate (WTI) oil price inches lower after registering modest gains in the previous day, trading around $68.40 during the Asian hours on Friday. The global energy market is experiencing a notable cooling period as geopolitical tensions in the Middle East begin to ease.
- WTI declines as US-Iran diplomatic breakthroughs eased supply fears and restored commercial shipping through the vital Strait of Hormuz.
- Doha talks significantly lowered the geopolitical risk premium that previously kept energy prices elevated.
- Saudi crude exports rebounded to ninety percent of pre-war levels as more tankers successfully navigated the recovered Strait of Hormuz.
West Texas Intermediate (WTI) oil price inches lower after registering modest gains in the previous day, trading around $68.40 during the Asian hours on Friday. The global energy market is experiencing a notable cooling period as geopolitical tensions in the Middle East begin to ease.
Crude oil prices decline following a series of diplomatic breakthroughs between the United States (US) and Iran. Recent negotiations in Doha, facilitated by mediators from Qatar and Pakistan, have significantly lowered the geopolitical risk premium that previously kept energy prices elevated.
Oil prices ease as the steady recovery of commercial shipping through the Strait of Hormuz. As one of the world's most critical maritime chokepoints, any instability in this waterway directly impacts global oil distribution. The stabilization of the region has allowed commercial tankers to resume transit with confidence, signaling to global markets that regional oil supplies are gradually normalizing after a prolonged period of uncertainty.
Major regional producers are rapidly restoring their export capacities. Saudi Arabia’s crude exports have rebounded to approximately 90% of their pre-war levels as more tankers successfully navigate the waterway. Simultaneously, the United Arab Emirates has managed to bring its oil exports entirely back to pre-war volumes. The UAE achieved this by discreetly routing tankers through the Strait while also heavily relying on its strategic pipeline that bypasses the chokepoint entirely, ensuring a steady flow of crude to international buyers and further stabilizing global energy markets.
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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