West Texas Intermediate (WTI) Oil prices are rising slightly on Monday during the European trading session. The price is now at $60.00 per barrel, up from the previous close of $59.91. In contrast, Brent crude oil remains stable at about $63.61. WTI Oil is a major type of crude oil traded globally. It is known as “light” and “sweet” because of its low density and sulfur content. This high-quality oil comes from the U.S. and is distributed from Cushing, Oklahoma. WTI Oil is an important benchmark in the market, with its price often mentioned in the news.

Factors Affecting Pricing

WTI Oil prices mainly depend on supply and demand, influenced by global economic growth, political instability, wars, and sanctions. Decisions from OPEC also have a significant impact, as they adjust production levels, changing market supply. Additionally, the value of the U.S. Dollar affects WTI prices since oil is mostly traded in dollars. Weekly inventory reports from the American Petroleum Institute (API) and the Energy Information Administration (EIA) can also sway WTI Oil prices. A drop in inventory might suggest rising demand and result in higher prices, while higher inventories could lower prices. The EIA’s data is seen as more reliable because it is government-supported. With WTI crude resting at around $60, the market seems poised for a potential change. This price level often acts as a key point for traders. In the coming weeks, strategies that benefit from increased volatility, like long straddles, may be effective. Concerns about global demand linger, especially after China’s purchasing managers’ index (PMI) fell to 49.5, indicating a second consecutive month of manufacturing decline. Additionally, slower industrial production in Germany points to shrinking consumption as we approach 2026. In this situation, it might be wise to consider buying put options to safeguard against a drop toward the $55 support level.

Supply Concerns and Risk Strategies

On the supply side, it’s crucial to monitor OPEC+ closely for any unexpected announcements. After their mixed meeting in Vienna last month, there are ongoing rumors of an emergency meeting to cut production if prices decline further. Therefore, selling naked calls is particularly risky right now. Last week’s EIA data revealed a surprising inventory increase of 2.1 million barrels, which has stifled price growth. If this week’s API and EIA reports show another significant inventory rise, it may indicate that supply is outpacing demand. This would support short-term bearish strategies. The value of the U.S. Dollar is also important, and it has been weakening as the Federal Reserve hints at pausing interest rate hikes. The U.S. Dollar Index has dropped nearly 2% since late October 2025, which can support oil prices, making a purely bearish outlook complex since a weaker dollar makes oil cheaper for international buyers. We also need to consider renewed low-level geopolitical tensions that could cause minor shipping delays around the Strait of Hormuz. Though not critical now, an escalation could quickly add a $5 risk premium to oil prices. A smart approach would be to hold some out-of-the-money call options as a hedge against unexpected events. Create your live VT Markets account and start trading now.

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