WTI Oil prices have dropped to about $61 per barrel after three days of rising but are still on track for a weekly gain. This decline is happening because the US has imposed sanctions on Russian oil companies Rosneft and Lukoil, which supply nearly half of Russia’s oil exports and over 5% of the world’s oil. Chinese oil companies have stopped buying Russian oil shipped by sea, and Indian refineries plan to cut back on imports due to the new sanctions. The European Union has also strengthened sanctions aimed at Russia’s energy sector, while Ukrainian forces continue attacks on refineries and pipelines. Despite all of this, Russia remains a significant player in the global oil market.

The US Measures and OPEC’s Position

The US has mentioned the possibility of further sanctions, while Russia insists that these measures will not greatly affect its economy. At the same time, OPEC is prepared to adjust production levels to deal with any potential shortages in the market. WTI, a type of crude oil that has low sulfur content, serves as a benchmark for oil pricing. Its prices are mainly influenced by supply and demand, political circumstances, and OPEC’s decisions. Data from the American Petroleum Institute and Energy Information Agency also impacts WTI prices. The recent drop in WTI to around $61.00 may represent a good buying opportunity, especially since it contradicts recent significant supply news. The latest US sanctions targeting Russian oil firms Rosneft and Lukoil are likely to disrupt a large volume of crude supply in the global market. The market is now trying to adjust to the cessation of Russian oil imports by Chinese firms and planned cuts from India. Before the sanctions, Russia was exporting over 3.4 million barrels of crude oil per day, meaning this is no minor disruption. Given these conditions, a price of around $61 seems low, indicating that further declines may be limited. We should consider the market’s past reactions to geopolitical upheavals. In early 2022, after the initial invasion of Ukraine, WTI prices jumped from around $90 to over $120 in just a few weeks. History shows that market dips in response to such news can be short-lived until the supply situation stabilizes.

OPEC’s Potential Supply Response

However, we should keep an eye on OPEC’s response. Kuwait’s oil minister has indicated readiness to increase production. Recent data from the EIA in September 2025 estimated OPEC’s spare capacity at about 3.5 million barrels per day. This potential increase in supply could limit any major price surge in the upcoming weeks. For traders in derivatives, this situation suggests that purchasing call options to bet on rising prices might be a key strategy, especially using the current dip as an entry point. The uncertainty surrounding OPEC’s timing and response could heighten market volatility, so strategies that benefit from significant price fluctuations in either direction should also be considered. Create your live VT Markets account and start trading now.

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