WTI Oil returns above $89.00 as tensions in the Middle East rise
Ni Guillermo Alcala
Na-update: 1 Jun 2026
Sikat na Artikulo
Crude prices are trading higher on Monday, with the barrel of the US benchmark West Texas Intermediate (WTI) changing hands at $89.40 at the time of writing, nearly $3 higher than last week’s closing price.
- WTI Oil is trading above $89.00 on Monday, about $3 up from last week's close.
- US attacks on Iran and Israel's Operations in Lebanon cast doubt about the fragile ceasefire.
- The IEA has warned that commercial Oil reserves might deplete by mid-June.
Crude prices are trading higher on Monday, with the barrel of the US benchmark West Texas Intermediate (WTI) changing hands at $89.40 at the time of writing, nearly $3 higher than last week’s closing price. Recent skirmishes between the US and Iran and the extension of the Israeli occupation in Lebanon are triggering fears of further escalation of the war.
The peace process between Washington and Tehran remains stalled, with the memorandum of understanding still awaiting US President Donald Trump's signature since Friday, and tensions in the Gulf region escalating
The US announced a new wave of strikes on Iran’s Military sites, while Iranian authorities said that they targeted a US base, and Kuwait reported the interception of missiles and hostile drones.
Apart from that, Israel has stepped up its operations in Lebanon, and President Benjamin Netanyahu announced attacks on Beirut’s southern suburbs, with the ceasefire reached in April still in place, and talks between Lebanon and Israel scheduled for this week.
Meanwhile, traffic through the Strait of Hormuz, a key waterway for about 20% of the global crude supply, remains practically blocked. Crude Oil is still below the key $100 level, but the International Energy Agency (IEA) has warned that accessible commercial Oil reserves could reach “operational stress levels” by mid June, which would, highly likely, push prices well above current levels.
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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