WTI remains below $97.00 as US-Iran peace hopes rise
Di Akhtar Faruqui
Aggiornato: 22 May 2026
ARTICOLI POPOLARI
West Texas Intermediate (WTI) oil price extends its losses for the third successive day, trading around $96.80 per barrel during the Asian hours on Friday. Crude oil prices decline as supply concerns ease amid growing optimism that the United States (US) and Iran could eventually reach an agreement.
- WTI falls as supply worries ease on growing optimism for a potential US-Iran agreement.
- US Marco Rubio noted encouraging signs for a US-Iran deal as Iranian officials acknowledged narrowed gaps between the nations.
- Seven OPEC+ nations will likely raise July's monthly output target by about 188,000 barrels per day on June 7.
West Texas Intermediate (WTI) oil price extends its losses for the third successive day, trading around $96.80 per barrel during the Asian hours on Friday. Crude oil prices decline as supply concerns ease amid growing optimism that the United States (US) and Iran could eventually reach an agreement.
US Secretary of State Marco Rubio noted there were some encouraging signs surrounding a possible deal with Iran, adding that Pakistani mediators are expected to visit Tehran while Iranian officials review Washington’s latest proposal.
Meanwhile, senior Iranian officials clarified that no deal has been officially reached with the United States, but they acknowledged that the gaps between the two nations have narrowed. However, according to Reuters, the Islamic Republic’s Supreme Leader, Mojtaba Khamenei, stated that Iran’s uranium enrichment and Tehran’s control over the Strait of Hormuz remain major sticking points in the negotiations.
In a related development, Iran is reportedly working with Oman on a framework for a permanent toll system that would formalize its control over maritime traffic through the Strait of Hormuz. This proposal has already faced strong opposition from US President Donald Trump, who rejected the idea and insisted that the critical waterway must remain open, free, and completely without toll charges.
Reuters cited four sources indicating that seven leading OPEC+, Organization of the Petroleum Exporting Countries and its allies, oil-producing countries will likely agree to a modest hike to July output when they meet on June 7, even though delivery for several members remains disrupted by the war involving Iran. The sources stated that the monthly target set by these seven core OPEC+ members is expected to be raised by about 188,000 barrels per day.
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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