WTI declines below $59.50 as Iran tensions ease and US-EU trade war fears grow
Oleh Lallalit Srijandorn
Tarikh Diterbitkan: 20 Jan 2026 | Tarikh Diubah: 20 Jan 2026
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West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $59.25 during the early European trading hours on Tuesday. The WTI price edges lower as Iran supply fears ease, while traders closely monitor the fallout from the United States (US) push to take control of Greenland.
- WTI price loses ground to near $59.25 in Tuesday’s early European session.
- Tensions in Iran eased over the last few days after rumors of a US attack.
- Traders will focus on the Greenland situation after Trump threatened to escalate tariffs on eight European countries.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $59.25 during the early European trading hours on Tuesday. The WTI price edges lower as Iran supply fears ease, while traders closely monitor the fallout from the United States (US) push to take control of Greenland.
While there weren’t escalating tensions in Iran over the weekend, Supreme Leader Ayatollah Khamenei said that 5,000 people were killed in this month's anti-government protests, per Reuters. Easing tensions in Iran reduces the likelihood of a US attack that could disrupt supplies from a major OPEC oil producer. This, in turn, could weigh on the WTI price.
Traders will shift their attention to the Greenland crisis. US President Donald Trump said on Saturday that he would impose an additional 10% import tariff from February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and the United Kingdom (UK) until the US is allowed to buy Greenland.
Trump is set to talk about Greenland at the World Economic Forum in Davos, Switzerland, on Wednesday. On Thursday, European Union leaders will convene in Brussels for an emergency summit. Fears of a damaging US-EU trade war could hurt market sentiment and exert some selling pressure on the black gold.
"With fears around Iran subsiding over the last few days after rumors of a U.S. attack, the market is now focusing on the Greenland situation and how deep any fallout between the U.S. and Europe could be, as any trade war expansion could impact demand," said Rystad analyst Janiv Shah.
The American Petroleum Institute (API) crude oil stockpiles report will be published on Tuesday. A larger-than-expected crude oil inventory draw indicates stronger demand and could boost the WTI price, while a bigger build than estimated signals weaker demand or excess supply, which might drag the WTI price lower.
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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