WTI Oil prices dropped early Wednesday during the European session. WTI traded at $60.75 per barrel, down from the previous day’s close of $60.88. Brent Oil also fell, trading at $64.75, compared to its prior close of $64.89. WTI, or West Texas Intermediate, is a type of crude oil known for its low gravity and low sulfur content. It is sourced in the United States and transported through the Cushing hub, making it a key benchmark in the oil market. The price of WTI affects global markets and is often mentioned in the news.

Factors Affecting WTI Oil Prices

The price of WTI Oil is affected by supply and demand. Factors like global economic growth, political instability, wars, and sanctions can change supply and demand. OPEC’s production decisions and the value of the US Dollar are also important. Weekly inventory reports from the American Petroleum Institute and the Energy Information Agency impact WTI prices. A decrease in inventories can signal higher demand, pushing prices up, while an increase in inventories suggests more supply, driving prices down. OPEC’s production adjustments heavily influence the market. With WTI crude oil around $60.75, we’re seeing clear bearish pressure in the short term. This morning’s Energy Information Administration (EIA) report confirmed this, showing an unexpected inventory increase of 2.1 million barrels, contrary to predictions of a small draw. This indicates that supply is exceeding demand, justifying a cautious or bearish outlook for the near future. The strengthening U.S. Dollar is also putting pressure on oil prices, making crude more expensive for buyers using other currencies. Recent data shows the Dollar Index rising to a three-month high of 106.50, as expectations grow that the Federal Reserve will keep interest rates steady through the end of the year. This economic headwind, coupled with slowing manufacturing data from China for October 2025, suggests that global demand may soften.

Looking Ahead to the Upcoming OPEC+ Meeting

Looking forward, everyone is watching the upcoming OPEC+ meeting set for the first week of December 2025. With current prices well below the breakeven point for many member nations, we expect strong statements and possible actions to cut production quotas to stabilize the market. This could create a price floor, and traders should be ready for a potential trend reversal as the meeting approaches. We have seen similar patterns in the past, especially during the price drops in late 2023 when OPEC+ implemented voluntary cuts to prevent a deeper decline. The volatility of recent years, from the price spike after the 2022 Ukraine invasion to later demand concerns, shows how quickly market sentiment can change. Therefore, while the present trend is downwards, strategies that anticipate a sharp rebound in December might be wise. Create your live VT Markets account and start trading now.

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