West Texas Intermediate (WTI) Oil prices went up early in the European session, reaching $64.05 per barrel, up from $63.63 the day before. Brent crude also rose from $66.57 to $67.04. WTI Oil is a key benchmark in the global market. It is easy to refine due to its low density and sulfur content. It comes from the U.S. and is distributed through the Cushing hub, influencing overall market trends.

Factors Influencing WTI Oil Prices

Several factors affect WTI Oil prices, with supply and demand being the main ones. Global economic growth, geopolitical instability, and exchange rate changes all play a role. OPEC’s production decisions significantly impact prices; any change in quotas can shift the balance of supply and demand. Reports from the American Petroleum Institute and the Energy Information Agency offer insights into these variations. A drop in oil stocks often indicates increased demand, and this can lead to price changes. OPEC meets biannually to make production decisions that can tighten or ease oil supply, further influencing prices. The expanded group, OPEC+, which includes Russia, also affects the market. The recent rise in WTI and Brent is something to keep an eye on, especially considering today’s date, August 7, 2025. This increase seems linked to yesterday’s report from the Energy Information Administration (EIA), which revealed a larger-than-expected U.S. crude inventory drop of 3.1 million barrels. This suggests that summer demand is holding up better than many expected. On the demand side, the situation is mixed for the upcoming weeks. A strong U.S. jobs report for July 2025 indicates healthy consumer activity, but concerns over China’s economy are growing after their manufacturing PMI fell into contraction territory last week. This contrast between U.S. strength and Chinese weakness could lead to unstable price movements.

Supply and Geopolitical Risks

From a supply perspective, the market is cautious. Although the OPEC+ alliance decided in June 2025 to keep current production quotas until the end of the third quarter, rising tensions in the Strait of Hormuz are adding a geopolitical risk premium to prices. We are preparing for potential volatility if these shipping route concerns escalate. We recall the sharp price swings of 2022 when WTI surged over $100 following the invasion of Ukraine, highlighting how quickly supply shocks can reshape the market. Given today’s mixed signals, buying options to hedge against sharp price moves in either direction, like through straddles, is a sensible strategy for the upcoming weeks. This approach allows us to benefit from potential price increases due to supply shocks while minimizing risks if fears of a recession occur. Create your live VT Markets account and start trading now.

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