The price of West Texas Intermediate (WTI) crude oil continues its losses for the second straight session, trading around $57.80 per barrel during European hours on Wednesday. The price of West Texas Intermediate crude fell by 1.70% in the previous session as the prospects for a peace agreement between Ukraine and Russia improved.
Ukrainian President Volodymyr Zelensky expressed his willingness to move forward with a US-backed plan to end the war, and said he was ready to discuss remaining contentious issues with US President Donald Trump, along with key European allies.
A potential peace deal could pave the way for easing Western sanctions on Russia, which have already imposed severe restrictions on major oil producers. This is likely to boost supply and raise concerns about oversupply at a time when global production is already exceeding demand.
Oil prices may remain under pressure as risks of oversupply increase. According to Reuters, Commerzbank noted that sanctions imposed on Russian oil companies Rosneft and Lukoil, along with restrictions on the sale of refined products of Russian crude to Europe, have prompted some Indian refiners to reduce their consumption of Russian oil. This has led to a decline in Russian exports and an increase in the volume of crude oil in floating storage. These barrels could quickly return to the market if the peace agreement leads to the lifting of sanctions on Rosneft and Lukoil.
The American Petroleum Institute (API) reported Tuesday that U.S. weekly crude oil inventories fell by 1.9 million barrels for the week ending Nov. 21, 2025, after an increase of 4.4 million barrels the previous week. This represents the first withdrawal after three consecutive weekly increases.
Frequently asked questions about West Texas Intermediate crude oil
West Texas Intermediate oil is a type of crude oil that is sold in international markets. WTI stands for WTI, and is one of three main types including Brent and Dubai crude. WTI is also referred to as “light” and “sweet” due to its relatively low gravity and sulfur content, respectively. It is considered a high quality oil and easy to refine. It is sourced from the United States and distributed through the Cushing Hub, considered the “pipeline crossroads of the world.” It is a benchmark for the oil market and the price of WTI is frequently quoted in the media.
Like all assets, supply and demand are the main drivers of the price of WTI. 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 affect prices. Decisions by OPEC, a group of major oil-producing countries, are another major driver of the price. The value of the US dollar affects the price of WTI, as oil is mostly traded in US dollars, so a weak US dollar can make oil more affordable and vice versa.
Weekly oil inventory reports from the American Petroleum Institute (API) and the Energy Information Agency (EIA) influence the price of WTI. Changes in inventories reflect fluctuations in supply and demand. If data shows a decline in inventories, this could indicate increased demand, leading to higher oil prices. High inventories can reflect increased supply, causing prices to fall. The API report is published every Tuesday and the EIA report the next day. Their results are usually similar, falling within 1% of each other 75% of the time. EIA data is more reliable, because it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 oil-producing countries that collectively decides production quotas for member countries at meetings held twice a year. Their decisions often affect WTI prices. When OPEC decides to cut its quotas, it can tighten supply, causing oil prices to rise. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten additional non-OPEC members, most notably Russia.
