WTI falls below $93.50 on hopes of strait of Hormuz reopening
Oleh Lallalit Srijandorn
Dikemas kini: 7 May 2026
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West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $93.25 during the early Asian trading hours on Thursday. The WTI price declines on optimism over a possible deal to end the war with Iran.
- WTI price falls to near $93.25 in Thursday’s early Asian session.
- The prospect of reopening the vital Strait of Hormuz weighs on the WTI price.
- US crude oil inventories fell by 2.3M barrels last week, said EIA.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $93.25 during the early Asian trading hours on Thursday. The WTI price declines on optimism over a possible deal to end the war with Iran.
The US and Iran are working on a preliminary framework for a deal aimed at ending the war and laying the groundwork for broader nuclear negotiations, per Bloomberg. US President Donald Trump stated that the US has had “very good talks” with Iran over the past 24 hours, but there’s no deadline for when he expects to hear back from Tehran.
A potential agreement with Iran to end the ongoing conflict and reopen the Strait of Hormuz, a key global oil shipping route, further boosted hopes of improved supply flows, undermining the WTI price.
US crude oil inventories continue to fall. According to the Energy Information Administration (EIA) weekly report, crude oil stockpiles in the US for the week ending May 1 declined by 2.314 million barrels, compared to a fall of 6.233 million barrels in the previous week. The market consensus was for a decrease 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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