WTI Oil tests levels above $96.00 as hopes of Hormuz reopening fade
By Guillermo Alcala
Updated: 11 May 2026
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Crude Oil prices have opened the week in a bullish tone, following US President Donald Trump’s rejection of Iran’s latest peace proposal. The US benchmark West Texas Intermediate (WTI) has jumped by about $4, from Friday’s close around $91.75 to $95.70 at the time of writing.
- WTI Oil trades near $96.00, up from Friday's close of around $91.75.
- Trump's refusal of Iran's peace proposal has sent Oil prices higher.
- Chinese trade data hints at higher demand for energy by the world's second-largest economy.
Crude Oil prices have opened the week in a bullish tone, following US President Donald Trump’s rejection of Iran’s latest peace proposal. The US benchmark West Texas Intermediate (WTI) has jumped by about $4, from Friday’s close around $91.75 to $95.70 at the time of writing.
Trump affirmed earlier on Monday that Iran’s response to the US peace plan was “totally unacceptable”, pushing back hopes of a swift end to the war and the reopening of the key Strait of Hormuz. Crude prices rallied after the news.
Iranian state media revealed that Tehran’s proposal includes a demand for war damages compensation payments and reclaims Iran’s sovereignty over the Strait of Hormuz.
Meanwhile, a frail ceasefire remains standing despite Iran’s accusations of attacks by the US on Iranian Oil tankers over the weekend. Furthermore, Israeli Prime Minister Benjamin Netanyahu affirmed that Iran’s war will not be over until Iranian enriched uranium is removed, a possibility completely discarded by Tehran.
On the macroeconomic front, strong US Nonfarm Payrolls data eased pressure on the Federal Reserve (Fed) to lower borrowing costs. A tighter policy for a longer time is expected to restrain consumption and, therefore, add weight to prices. Chinese trade data, on the other hand, hints at a stronger activity from the world’s second-largest economy, and at higher demand for Oil, which is underpinning Crude's rally.
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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