WTI tumbles to four-month low below $69.50 as Hormuz traffic climbs
Oleh Lallalit Srijandorn
Dikemas kini: 1 Jul 2026
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West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $69.40 during the early European trading hours on Wednesday. The WTI price falls as the number of vessels transiting the Strait of Hormuz shows signs of recovery amid progress toward easing Middle East tensions.
- WTI price slumps to four-month low near $69.40 in Wednesday’s early European session.
- Traffic through the Strait of Hormuz picked up for the first time since Iran’s attacks on ships in the critical waterway.
- US crude oil inventories fell last week, API said.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $69.40 during the early European trading hours on Wednesday. The WTI price falls as the number of vessels transiting the Strait of Hormuz shows signs of recovery amid progress toward easing Middle East tensions. The US Energy Information Administration (EIA) weekly crude oil report is due later on Wednesday.
Data from Kpler showed that around 24 commodity ships, including those that haul oil and liquefied natural gas, as well as bulk carriers, transited the Strait of Hormuz in both directions on Monday. The trend continued on Tuesday, with a supertanker reappearing in the gulf, along with a number of smaller ships. A pickup in traffic through the critical water eases fears of oil supply disruption and weighs on the WTI price.
US envoys Jared Kushner and Steve Witkoff arrived in Doha on Tuesday. A Qatari government spokesperson said they would meet the Qatari prime minister to discuss ongoing US-Iran talks and regional developments. However, there are currently no high-level meetings between the US and Iran.
Traders will closely monitor the developments surrounding US-Iran talks. Lack of progress in a peace deal or any signs of rising tensions in the Middle East could boost the black gold in the near term.
US crude oil inventories continued their downward plunge last week. According to the American Petroleum Institute (API) report, crude oil stockpiles in the US for the week ending June 26 fell by 6.072 million barrels, compared to a decline of 765,000 barrels in the previous week. The market consensus was for a decrease of 4.1 million barrels.
Traders will take more cues from the EIA weekly crude oil report due later on Wednesday. A larger-than-expected crude oil inventory draw indicates stronger demand and could lift the WTI price, while a bigger build than estimated signals weaker demand or excess supply, which might undermine the WTI price.
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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