WTI Oil eases to $87.50 amid a fragile US-Iran ceasefire
By Guillermo Alcala
Updated: 22 Apr 2026
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Crude prices edged lower on Wednesday following US President Donald Trump's unilaterally announced extension of the ceasefire on Tuesday.
- Oil prices pull back to $87.50 but remain within the previous days' ranges.
- The market has broadly overlooked Trump's announcement of an indefinite ceasefire in Iran.
- The ongoing blockade of the Strait of Hormuz keeps WTI prices steady near $90.
Crude prices edged lower on Wednesday following US President Donald Trump's unilaterally announced extension of the ceasefire on Tuesday. The barrel of the US benchmark West Texas Intermediate (WTI) has pulled back to $87.50 ahead of Wednesday’s European session opening, from $91.60 highs on Tuesday, but remains within the last few days’ range.
Trump said on Tuesday that the ceasefire deadline will be prolonged until negotiations with Iran conclude, but the peace talks, which were supposed to have restarted on Tuesday, remain stalled. US Vice President JD Vance cancelled his trip to Pakistan, and Tehran has not yet decided whether to send a delegation for a new round of talks this week.
Meanwhile, the US military keeps its grip on the Strait of Hormuz. Iranian Foreign Minister Abbas Araghchi affirmed that blockading Iranian ports is “an act of war” and a “violation of the ceasefire”, and some voices from Tehran have called to “take the initiative” against the US.
In this context, WTI prices remain broadly steady near the $90 level, enhancing an energy shock that is tipping the global economy to the brink of stagflation.
Data from the American Petroleum Institute (API) released on Tuesday showed that US Crude Oil inventories dropped by 4.4 million barrels in the week of April 17. These figures beat expectations of a 1 million decline, and highlight a strong demand for Oil, which contributes to keeping prices buoyed at high levels.
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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