WTI remains below $63.00 due to oversupply concerns

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West Texas Intermediate (WTI) Oil price trades largely unchanged around $62.80 per barrel during the Asian session on Friday, after dropping more than 3% in the previous session. Crude Oil prices remain under pressure amid ongoing concerns about oversupply.

WTI trades flat after falling more than 3% in the previous session.
Crude Oil prices stay pressured amid persistent oversupply concerns.
The IEA projects a 3.7 million bpd surplus in 2026 and cut its global Oil demand forecast.

The International Energy Agency (IEA) said the market is projected to face a surplus of just over 3.7 million barrels per day (bpd) in 2026, potentially the largest annual average glut on record, while also trimming its global Oil demand forecast for that year. In its monthly report, the agency noted that global inventories expanded in 2025 at the fastest pace since the 2020 pandemic.

Meanwhile, US President Donald Trump indicated that negotiations with Iran could continue for up to a month, lowering the immediate risk of military action that might disrupt supply. Trump is currently pursuing a diplomatic strategy aimed at curbing Iran’s nuclear program. Israeli Prime Minister Benjamin Netanyahu, speaking before departing Washington, said Trump appeared to be shaping a framework to resolve tensions with Iran over its nuclear activities.

Industry data and Reuters calculations indicated that Russia’s seaborne Oil product exports rose 0.7% in January from December to 9.12 million metric tons, supported by strong fuel output and seasonally weaker domestic demand.

Venezuela is reportedly preparing to allocate additional Oil production acreage to Chevron and Spain’s Repsol. Officials in Caracas could award new exploration and production blocks as early as this week, according to a Bloomberg report.

WTI Oil FAQs

What is WTI Oil?

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.

What factors drive the price of WTI Oil?

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.

How does inventory data impact the price of WTI Oil

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.

How does OPEC influence the price of WTI Oil?

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.