**Further Assessment of WTI Oil Prices** The price of West Texas Intermediate (WTI) oil is stable at about $58.10 during early Asian trading. Traders are watching for possible changes in Venezuela’s oil exports after the US’s capture of Venezuelan President Nicolas Maduro. The US plans to take temporary control of Venezuela and access its oil reserves. This move could affect an OPEC member that is already under US sanctions. The uncertainty may influence crude oil flows and global oil markets. Attention is also on the upcoming oil stockpile report from the American Petroleum Institute (API). Changes in these inventories can signal shifts in demand and supply, which can impact WTI prices. WTI, a high-quality crude oil from the US, serves as a benchmark for oil pricing worldwide. Its popularity comes from its low gravity and sulfur content. Several factors influence WTI oil prices, including supply and demand, geopolitical tensions, and OPEC’s production levels. The value of the US Dollar and the weekly inventory reports from the API and the Energy Information Administration (EIA) are also important. **Impact of OPEC’s Production Quotas** OPEC’s production quotas greatly influence WTI prices. Lower quotas can raise oil prices by restricting supply, while higher production usually lowers prices. Back in 2025, WTI prices were around $58 after the US intervened in Venezuela. The market was uncertain about how quickly oil exports would return. Now, with WTI prices exceeding $81 per barrel, it’s clear that restoring supply has been a slower and more complicated process than expected. Despite developments in Venezuela over the last year, new oil supplies have not surged. Recent reports show that Venezuelan production has only increased to about 950,000 barrels per day, a small rise given the size of its reserves. Ongoing infrastructure issues suggest a significant supply boost is not coming soon, supporting higher prices in the near future. Traders should monitor inventory reports closely because they indicate a tight market. The latest EIA data revealed a drop of over 2.5 million barrels in crude oil inventory, suggesting strong demand. This strength implies that strategies aimed at price stability or further increases could be advantageous. The slow recovery in Venezuela has allowed OPEC+ to manage supply effectively. They have confirmed they will continue their production cuts into the first quarter of 2026, working to keep prices supported and avoid surplus. Any signs of wavering resolve might create significant price drops for traders to watch. The market remains sensitive to geopolitical news, not only from Venezuela but also due to ongoing tensions in the Middle East, which add a persistent risk premium. In this context, volatility is likely to stay high. Traders should consider strategies that protect against sudden price spikes, such as long call options or bull call spreads. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now