West Texas Intermediate (WTI) oil prices fell on Friday during the early European session. WTI was priced at $60.07 per barrel, down from Thursday’s close of $60.12. Meanwhile, Brent crude dropped to $63.95 from $64.00. WTI is a high-quality crude oil from the US, known as “light” and “sweet” because of its low density and sulfur content. It serves as a key benchmark in the oil market, and its price is often reported in the news.

Factors Affecting WTI Prices

WTI oil prices mainly depend on supply and demand. Events like political unrest, wars, and sanctions can disrupt supply, while decisions made by OPEC significantly influence prices. The American Petroleum Institute (API) and the Energy Information Administration (EIA) release weekly oil inventory reports that affect oil prices. If inventories drop, it can signal higher demand, leading to price increases. Conversely, rising inventories suggest more supply, which can push prices down. The EIA is viewed as more reliable because it is a government agency. OPEC, made up of 12 oil-producing nations, sets production limits in meetings twice a year. This can also affect WTI prices. The larger group, OPEC+, includes countries like Russia, which further influences global oil pricing with their collective decisions. Currently, WTI crude oil prices are around $60.07, indicating a bearish market sentiment. This decline follows the EIA’s report on October 29, which revealed a surprise inventory rise of 2.5 million barrels instead of the expected drop. Such increases often indicate that supply is outweighing current demand.

Global Economic Impact on Oil Prices

These price levels are also affected by concerns about global economic growth, which impacts oil demand. The International Monetary Fund recently lowered its 2026 global growth forecast to 2.9%, citing slowdowns in key European and Asian markets. For traders, this raises concerns about future energy use. On the supply side, everyone is watching the upcoming OPEC+ meeting in early December. After keeping production levels steady for most of 2025, there’s speculation about whether the group will announce deeper cuts to support prices. Any comments from member countries in the coming weeks could create market volatility. The strength of the US Dollar is another factor to consider, as oil is priced in dollars worldwide. The US Dollar Index (DXY) has remained strong, around 107, making crude oil pricier for buyers using other currencies. This strong dollar may continue to hinder any significant price recovery. Looking back, current price levels around $60 seem far from the volatility and spikes seen during the 2022-2023 period. For derivative traders, this environment suggests strategies like range-bound trading or further bearish options, such as buying puts or setting up bear call spreads. Implied volatility might rise as we approach the December OPEC+ meeting, offering opportunities for those selling premium. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now