Key Moments
-
WTI trades near $59.55 during early Asian hours, remaining close to
one-month highs as Iran-related tensions support prices. -
Meanwhile, traders await the American Petroleum Institute’s weekly crude
inventory report, which could move prices depending on stock changes. -
At the same time, possible additional supply from Venezuela, including up
to 50 million barrels of sanctioned oil, may cap further gains.
Geopolitical Risk in Iran Supports WTI
West Texas Intermediate (WTI), the U.S. crude oil benchmark, trades around
$59.55 in early Asian trading on Tuesday. Prices remain near one-month highs
as investors react to rising geopolitical tensions involving Iran. At the
same time, markets position ahead of the weekly crude inventory data from the
American Petroleum Institute (API), due later today.
According to Reuters, U.S. President Donald Trump said on Monday that countries
doing business with Iran will face a 25% tariff on trade with the United States.
Earlier, Trump also warned of consequences if Iran targets civilians. In
response, Tehran cautioned both the U.S. and Israel against any intervention.
As a result, geopolitical concerns continue to dominate market sentiment.
“Markets seem focused on the unrest in Iran, supported by firm fundamentals,”
said Amarpreet Singh, an analyst at Barclays.
WTI crude trades near $59.7, the highest in over a month.
Price has broken the descending trendline / compression structure and confirmed it with a bullish daily close.Even amid Venezuela oversupply concerns, crude failed to break below the $55 zone, instead forming a base.… pic.twitter.com/6Qr4piAll6
— Albetrose Alex (@albetrose_alex) January 13, 2026
Venezuelan Supply May Limit Upside
However, expectations of increased oil supply from Venezuela could slow
further gains in WTI. Last week, Trump said Venezuela’s interim government
agreed to supply up to 50 million barrels of high-quality sanctioned oil to
the United States.
In addition, he noted that Washington is seeking full access to Venezuelan oil
after U.S. forces arrested former President Nicolas Maduro over the weekend.
As a result, potential new supply may offset the geopolitical risk premium
linked to Iran.
API Inventory Report in Focus
Later on Tuesday, the API crude oil inventory report will likely be the main
scheduled driver for oil markets. If the report shows a larger-than-expected
draw, it would signal stronger demand and support prices.
On the other hand, a larger inventory build would suggest softer demand or
excess supply. In that case, WTI prices could face downward pressure.
This story was corrected on January 13 at 03:25 GMT to clarify that the first
paragraph refers to West Texas Intermediate.
Key Drivers of WTI: Frequently Asked Questions
| Topic | Details |
|---|---|
| What Is WTI Oil? |
WTI stands for West Texas Intermediate, one of the world’s three main oil benchmarks alongside Brent and Dubai Crude. It is classified as “light” and “sweet” due to its low density and sulfur content. Because it is easy to refine, WTI is considered a high-quality crude. It is produced in the United States and delivered through the Cushing, Oklahoma hub, often called the “Pipeline Crossroads of the World.” |
| Main Price Drivers |
WTI prices mainly depend on supply and demand. Strong global growth boosts demand, while weak growth reduces it. In addition, wars, sanctions, and political instability can disrupt supply. OPEC production decisions also influence prices. Finally, the U.S. dollar plays a role because oil trades in dollars. A weaker dollar supports prices, while a stronger dollar can weigh on them. |
| Why Inventory Data Matters |
Traders closely monitor weekly inventory data from the API and the Energy Information Administration (EIA). Falling stockpiles usually signal stronger demand and can lift prices. Rising inventories suggest excess supply and often pressure prices lower. The API releases its data on Tuesdays, while the EIA follows on Wednesdays. Although their figures often align, the EIA report is generally viewed as more reliable. |
| Role of OPEC |
OPEC includes 12 major oil-producing countries that meet twice a year to set production targets. Output cuts can tighten supply and push prices higher, while increases can have the opposite effect. OPEC+ expands this group to include additional producers, most notably Russia. |
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