WTI Climbs Toward $98.60 as UAE Pushes UN Hormuz Action

Key Moments

WTI trades near $98.60 per barrel in Asian hours after a drop of more than 4% in the previous session.
UAE officials seek a UN Security Council mandate for a multinational mission to secure the Strait of Hormuz.
OPEC output in March fell by 7.3 million bpd to 21.57 million bpd, the lowest level since June 2020, as Hormuz disruptions hit supply.

Geopolitical Tensions Support WTI Recovery

West Texas Intermediate (WTI) crude futures rise slightly after a sharp drop in the previous session. Prices trade near $98.60 per barrel during Asian hours on Wednesday. This rebound comes as the United Arab Emirates (UAE) pushes for action to reopen the Strait of Hormuz. As a result, concerns about a wider regional conflict increase. At the same time, Iran warns it may respond with further measures.

According to a Wall Street Journal report, Emirati officials are pushing for a United Nations Security Council (UNSC) resolution. This move would allow a multinational mission to restore safe passage through the strait. In addition, the UAE urges the United States and its allies in Europe and Asia to form a coalition. The group could clear mines, escort ships, and secure key points along the waterway if needed.

Mixed Signals From Washington and Tehran

Meanwhile, oil prices recently faced pressure as hopes for de-escalation grew. These expectations followed comments from US President Donald Trump. He said the United States could exit the Iran conflict soon, possibly within two to three weeks. He also suggested operations might end before the Strait of Hormuz fully reopens to avoid a prolonged conflict.

Iran’s president has also shown some openness to ending the confrontation under certain conditions. However, uncertainty remains. Iran has maintained a firm stance for years, and US forces are still present in the region. Therefore, the risk of renewed tensions has not disappeared.

OPEC Supply Falls Sharply as Hormuz Disruptions Bite

A Reuters survey shows that OPEC crude production dropped sharply in March. Output reached its lowest level since June 2020, when the COVID-19 pandemic disrupted markets. The decline mainly reflects supply issues linked to the Strait of Hormuz. Overall, production fell by 7.3 million barrels per day (bpd) compared to the previous month, bringing total output to 21.57 million bpd.

OPEC Output Metric	Level
Monthly change in March	-7.3 million bpd
Total March production	21.57 million bpd
Lowest level since	June 2020

US Inventory Build Counters Tight Supply Narrative

In contrast, US inventory data points to rising supply. The American Petroleum Institute (API) reported a sharp increase in crude stockpiles for the week ending March 27. Inventories rose by 10.263 million barrels, marking the largest build in recent weeks. Previously, stocks increased by 2.3 million barrels. Markets had expected a draw of 1.3 million barrels. Therefore, the data suggests short-term supply is less tight in the United States.

API Weekly Crude Oil Stock	Change (million barrels)
Latest week (ending March 27)	+10.263
Previous week	+2.3
Market expectation	-1.3

WTI Market Basics

WTI is a type of crude oil traded on global markets. The name stands for West Texas Intermediate. It is one of three main benchmarks, alongside Brent and Dubai Crude. Traders often call WTI “light” and “sweet” because it has low density and sulfur content. As a result, refineries can process it more easily. The United States produces WTI and distributes it through the Cushing hub, often called the “Pipeline Crossroads of the World.”

Key Drivers of WTI Price

Supply and demand drive WTI prices. Strong global growth usually increases demand, while weak growth reduces it. In addition, geopolitical events such as wars or sanctions can disrupt supply. OPEC decisions also play a major role. For example, production cuts often push prices higher, while increased output tends to lower them. Furthermore, the US Dollar affects oil prices. A weaker dollar makes oil cheaper for global buyers, which can boost demand.

Role of Inventory Data

Weekly inventory reports from the American Petroleum Institute (API) and the Energy Information Administration (EIA) also influence prices. When inventories fall, demand often appears strong, which can lift prices. On the other hand, rising inventories suggest higher supply and may push prices down. The API releases its report on Tuesdays, while the EIA follows on Wednesdays. Although both reports usually align, markets view EIA data as more reliable because it comes from a government source.

OPEC’s Influence on WTI

OPEC is a group of major oil-producing countries that set production targets. The group meets twice a year to adjust output levels. These decisions often move oil prices. When OPEC cuts production, supply tightens and prices tend to rise. Conversely, higher output can lower prices. In addition, OPEC+ includes other producers such as Russia, which increases the group’s overall influence on the market.