West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $70.65 during the early Asian trading hours on Monday. The WTI jumps to its highest since June 2025 after joint military strikes by the US and Israel against Iran over the weekend. Traders brace for the release of the American Petroleum Institute report, which will be released later on Tuesday.
The US and Israel began “major combat operations” in Iran over the weekend. Iran has responded by firing drones and missiles into Israel and American targets, including the United Arab Emirates, Bahrain, Qatar, Kuwait, and Jordan.
CNBC reported on Sunday that Iranian Supreme Leader Ayatollah Ali Khamenei was killed. The group will continue to run the country until a new leader is named. US President Donald Trump stated that he will “avenge” the deaths of three US service members and said the combat operations in Iran will continue.
Traders are pricing in a high risk of closure for the Strait of Hormuz, a critical passage for roughly 20% of the world’s oil supply. Fears that the war between the US and Iran will spiral out of control and lead to a major supply disruption could boost the WTI price in the near term.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) said on Sunday that they will boost production of crude. The group agreed on a modest oil output boost of 206,000 barrels per day (bpd), which was more than analysts had been expecting.
(This story was corrected on March 2 at 01:30 GMT to say, in the first paragraph, that West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $70.65 during the early Asian trading hours on Monday, not Friday).
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-jumps-above-7050-on-fears-of-iran-supply-disruption-202603020119
