West Texas Intermediate (WTI) depreciates after two days of gains, trading around $91.80 per barrel during the Asian hours on Friday. Crude oil prices fell after US President Donald Trump said Washington would pause attacks on Iran’s energy sector for 10 days, extending the earlier April 6 deadline to allow more time for negotiations. Trump indicated the move came in response to a request from Tehran.
President Trump also said Iran had allowed 10 oil tankers to transit the Strait of Hormuz as a goodwill gesture, noting that the vessels were flying Pakistan’s flag. The conflict has nearly halted shipments through the Strait, a key chokepoint that typically handles about one-fifth of global crude oil and LNG flows.
However, The Wall Street Journal reported that mediators said Iran denied making any such request, highlighting the fragility of the diplomatic process and the low probability of a near-term ceasefire.
Meanwhile, the Pentagon is weighing plans to deploy up to 10,000 additional ground troops to the Middle East. Defence officials said the option is designed to preserve strategic flexibility—allowing for rapid escalation if talks collapse while maintaining a credible deterrent.
US Treasury Secretary Scott Bessent said on Thursday that an insurance program aimed at boosting shipping through the waterway will begin soon. The initiative, first announced by Trump on March 3, involves the US International Development Finance Corporation providing insurance guarantees, along with naval escorts, to ensure the safe passage of oil tankers and other vessels.
Iran confirmed it had rejected the US 15-point proposal to end the war and instead submitted its own terms, including recognition of Tehran’s authority over the Strait of Hormuz. The Islamic Republic outlined five conditions under which it would consider ending the conflict.
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
Source: https://www.fxstreet.com/news/wti-slips-below-9200-as-us-pauses-iran-energy-strikes-for-talks-202603270206
