WTI slumps to near $97.50 as Trump pauses Hormuz operation
Par Lallalit Srijandorn
Mis à jour: 6 May 2026
ARTICLES POPULAIRES
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $97.50 during the early Asian trading hours on Wednesday. The WTI price falls amid easing tensions in the Middle East.
- WTI price tumbles to near $97.50 in Wednesday’s early Asian session, down 2.20% on the day.
- Trump said the operation to reopen the Strait of Hormuz will be paused.
- The API reported larger-than-expected crude oil inventories last week.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $97.50 during the early Asian trading hours on Wednesday. The WTI price falls amid easing tensions in the Middle East. Traders await the release of the Energy Information Administration (EIA) report, which will be published later on Wednesday.
US President Donald Trump said late Tuesday that an operation to reopen the Strait of Hormuz will be paused for a short period to see whether an agreement can be finalized and signed. Trump further stated that the decision was made at the request of Pakistan and other countries and follows what he called “tremendous military success” during a US campaign against Iran.
His latest statement on pausing Project Freedom came hours after the US Defence Secretary Pete Hegseth said the US-Iran ceasefire "certainly holds" for now. Furthermore, US Secretary of State Marco Rubio stated that the military objectives of the so-called “Operation Epic Fury” have concluded, and the offensive stage of the war with Iran is “over.”
US crude oil inventories declined for the third straight week. According to the American Petroleum Institute (API) weekly report, crude oil stockpiles in the US for the week ending May 1 fell by 8.1 million barrels, compared to a decrease of 1.79 million barrels in the previous week. The market consensus was for a decline of 2.8 million barrels.
Goldman Sachs analysts reported that global oil inventories are approaching their lowest level in the last eight years, warning that the rapid reduction in reserves is becoming a critical factor against the backdrop of limited supplies.
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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