Key Moments
- WTI trades near $58.10 per barrel during Asian hours on Friday after rising more than 4% in the previous session.
- Chevron, Vitol, Trafigura, and other firms compete for US approval to export up to 50 million barrels of Venezuelan crude.
- Meanwhile, geopolitical tensions involving Venezuela, Iran, Russia, and US sanctions continue to cloud future supply flows.
WTI Pulls Back as Inventory Build Weighs on Sentiment
West Texas Intermediate (WTI) crude edges lower in Asian trading on Friday and hovers near $58.10 per barrel. The pullback follows gains of more than 4% in the prior session. However, rising global inventories and renewed oversupply concerns now weigh on market sentiment.
As a result, traders reassess the balance between ample physical supply and ongoing geopolitical risks. The latest inventory trends tilt sentiment toward caution despite recent price strength.
Competition Intensifies for Venezuelan Crude Export Deals
Oil major Chevron, along with trading houses Vitol and Trafigura, is actively seeking US approval to export Venezuelan crude. In addition, several other firms have entered the race. Together, they aim to market up to 50 million barrels of accumulated inventories held by state-owned PDVSA.
At the same time, negotiations continue over Venezuela’s future oil export framework. These talks add another layer of uncertainty to global crude supply.
| Company / Entity | Role | Venezuelan Crude Involved |
|---|---|---|
| Chevron | Oil major seeking US export approval | Up to 50 million barrels of PDVSA inventories |
| Vitol | Trading house pursuing marketing rights | |
| Trafigura | Trading house pursuing marketing rights |
Geopolitical Risks Offset Supply Pressure
Despite pressure from rising inventories, crude prices continue to find support from geopolitical risks. In particular, traders remain alert to potential supply disruptions linked to Venezuela and Iran.
Meanwhile, US President Donald Trump warned that Washington would respond forcefully to any deadly crackdown on protesters in Iran. At the same time, markets monitor US policy toward Venezuela and heightened rhetoric related to Greenland. Together, these developments keep risk premiums embedded in oil prices.
US Sanctions Policy Targets Russian Oil Buyers
US Senator Lindsey Graham said he met President Trump at the White House on Wednesday. According to Graham, the President supports advancing a long-delayed Russia sanctions bill. If passed, the measure would allow Washington to penalize countries that buy discounted Russian oil.
China, India, and Brazil could face scrutiny under the proposal, as lawmakers view such purchases as indirectly supporting Russia’s war effort.
US Steps Up Enforcement on Venezuelan Tankers
Washington has also increased enforcement actions tied to Venezuelan oil exports. Recently, US authorities seized two oil tankers in the Atlantic that were linked to Venezuela, including one sailing under a Russian flag.
According to Reuters, these seizures highlight stronger efforts to control energy flows and reinforce sanctions. As a result, traders continue to factor policy risk into oil price forecasts.
WTI Oil FAQs
What is WTI Oil?
WTI Oil, or West Texas Intermediate, is a major crude oil benchmark traded globally. Alongside Brent and Dubai Crude, it ranks as one of the three most widely followed oil grades. Traders refer to WTI as “light” and “sweet” due to its low density and sulfur content.
Producers source WTI in the United States and deliver it through the Cushing hub in Oklahoma, often called the “Pipeline Crossroads of the World.” As a result, WTI prices frequently appear in global market coverage.
What factors drive the price of WTI Oil?
Supply and demand remain the primary drivers of WTI prices. Strong global growth typically boosts demand, while weaker growth reduces it. In addition, wars, political instability, and sanctions can disrupt supply and move prices sharply.
OPEC decisions also play a major role. When the group cuts output, prices often rise. Conversely, higher production usually pressures prices. Moreover, because oil trades in US Dollars, a weaker Dollar tends to support WTI, while a stronger Dollar can weigh on it.
How does inventory data impact the price of WTI Oil?
Weekly inventory reports from the American Petroleum Institute (API) and the Energy Information Administration (EIA) strongly influence WTI prices. Falling inventories often signal stronger demand and support prices.
By contrast, rising inventories suggest excess supply and can pressure prices. While both reports often align, traders generally place greater weight on EIA data because it comes from a government source.
How does OPEC influence the price of WTI Oil?
OPEC brings together major oil-producing nations to set production targets. The group meets twice a year to adjust output levels, and its decisions often drive sharp price moves.
When OPEC lowers quotas, supply tightens and prices usually climb. On the other hand, higher production tends to push prices lower. OPEC+ includes additional producers, most notably Russia, which further amplifies its market impact.
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