WTI climbs to near two-week high above $60.00 as US sanctions Russian oil companies

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West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $60.10 during the early Asian trading hours on Thursday. The WTI climbs to a near two-week high after the United States (US) hit Russia's major oil companies with sanctions.

WTI price jumps to near $60.10 in Thursday’s early Asian session.
The Trump administration imposed sanctions on Russian oil companies.
EIA crude oil inventories showed an unexpected decline, signaling stronger demand.

Reuters reported on Wednesday that the US President Donald Trump administration hit Russia's major oil companies with sanctions and accused the Russians of a lack of commitment toward ending the war in Ukraine. Sanctions on Russia could limit its crude exports to global markets, raising concerns about tighter global supply and pushing the WTI price higher.

The fresh sanctions were announced one day after plans for a summit between Trump and Russian President Vladimir Putin were put on hold. US Treasury Secretary Scott Bessent said on Wednesday that the new sanctions target Lukoil and Rosneft, two of Russia's largest oil companies. "Given President Putin’s refusal to end this senseless war, Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine," said Bessent.

Additionally, signals of stronger demand also provide some support to the WTI price. Data released by the US Energy Information Administration (EIA) on Wednesday revealed that crude oil stockpiles in the US for the week ending October 17 declined 961,000 barrels compared to a rise of 3.524 million barrels in the previous week. The forecast had predicted a growth of 1.8 million barrels.

On the other hand, concerns over excess supply might cap the upside for the black gold. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) have pushed ahead with plans to increase oil supply. This has led analysts to predict a surplus of crude this year and next year. The International Energy Agency (IEA) last week projected a global surplus of nearly 4 million barrels per day in 2026.

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.