WTI US oil prices have fallen due to reduced tensions in the Middle East. Comments from former US President Donald Trump about a potential deal with Iran, a major player in global oil supply, have also influenced this decline. OPEC+ has decided to keep oil production steady in March, which has impacted price support. As of now, West Texas Intermediate (WTI) US oil is trading at around $61.90, down 5.50%. This drop reflects how the market is reacting to easing US-Iran tensions, which could change global supply expectations. Talks of a US-Iran deal might lead to more crude oil being available, further affecting prices.

Impact of OPEC+ Decision

OPEC+, which includes ten non-OPEC countries, has confirmed it will maintain its current production levels in March, with their next meeting scheduled for March 1. They previously froze production increases to respond to expected lower demand. However, this decision has not completely countered the adverse effects of geopolitical changes. Market attention is now on US oil inventory data, with an American Petroleum Institute report coming soon. This data could influence oil prices by showing trends in demand and supply. These factors are currently shaping the WTI oil market. Today, February 2, 2026, the market looks very different compared to last year. WTI crude is trading at about $84.50, a big jump from the nearly $62 it dropped to in 2025 when talks of a US-Iran deal caused market anxiety. This indicates that the basic supply and demand situation is much tighter now.

Traders’ Perspectives on Current Market

Unlike last year when OPEC+ held production steady, the group has shown discipline with recent output cuts, reaffirmed in January. This commitment to limit supply is helping to support prices, which could not counteract the bearish sentiment of 2025. Traders should see this discipline as a positive sign for the upcoming weeks. Recent data suggests stronger demand, which should keep prices stable. The latest EIA report showed an unexpected decrease in US crude inventories by 2.1 million barrels, indicating healthy consumption. This is in contrast to concerns about weaker demand that existed this time last year. Moreover, the geopolitical situation has shifted from reduced tensions to increased risk. Recent drone attacks on Saudi Arabian oil facilities have added a risk premium to the market, making traders cautious about short positions. The chance of sudden supply disruptions is now a pressing concern, overshadowing the long-term prospects of Iranian oil returning. For derivative traders, the approach of selling into rallies may no longer be wise. Instead, it may be better to prepare for continued strength or volatility by buying call options or selling out-of-the-money puts. Focus should be on OPEC+’s limited supply, strong demand indicators, and current geopolitical risks, rather than the fading memories of last year’s diplomatic rumors. Create your live VT Markets account and start trading now.

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