WTI edges higher to near $59.50 due to easing US-China tensions

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West Texas Intermediate (WTI) Oil price gains ground for the second successive session, trading around $59.30 per barrel during the Asian hours on Tuesday. Crude Oil prices receive support from easing United States (US)-China trade tensions.

WTI receives support from easing concerns over global Oil demand, driven by moderating US-China trade tensions.
US Treasury Secretary Scott Bessent said that President Trump is still committed to meeting Chinese President Xi Jinping in South Korea.
OPEC+ stated in its monthly report that the Oil market’s supply shortfall is expected to shrink in 2026.

US President Trump softened his stance on China, signaling openness to a deal just days after threatening 100% tariffs. Additionally, US Treasury Secretary Scott Bessent said Monday that President Trump remains committed to meeting China’s President Xi Jinping in South Korea this month to ease tensions over tariffs and export controls.

Oil prices also draw support from increasing caution regarding Ukraine-Russia tensions after President Trump shared plans to send long-range Tomahawk cruise missiles to Ukraine. When asked aboard Air Force One on Sunday whether he would supply Kyiv with Tomahawks, Trump responded, “We’ll see… I may.” He added that providing the missiles would represent “a new step of aggression” in Ukraine’s conflict with Russia, per BBC.

The upside of the Oil prices was capped as geopolitical risk premiums eased following Hamas’s release of Israeli hostages and Israel’s release of Palestinian prisoners. Moreover, the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, stated in its monthly report on Monday that the Oil market’s supply shortfall is expected to narrow in 2026, as the broader OPEC+ alliance proceeds with its planned production increases.

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.