West Texas Intermediate (WTI) Crude Oil steadies on Wednesday, trimming part of its earlier losses as traders react to the latest US Energy Information Administration (EIA) report. At the time of writing, WTI is trading around $58.00, rebounding after hitting an intraday low of $57.54.
The EIA reported a 1.812 million barrel draw in US commercial crude inventories for the week ending December 5, a larger decline than the 1.2 million barrel draw expected, reversing the prior week’s 574,000 barrel increase.
However, the broader outlook for oil remains tilted to the downside. Traders stay cautious as oversupply worries continue to dominate sentiment. US energy officials recently projected that domestic crude production will rise to a record 13.6 million barrels per day this year, adding to concerns that supply growth is outpacing demand.
Market focus now shifts to Thursday’s OPEC Monthly Oil Market Report, where traders will look for updated forecasts on global demand, production trends, and the supply outlook heading into 2026.
Traders are also watching the Federal Reserve’s policy decision due later in the day. A 25 basis point (bps) rate cut is widely expected, but uncertainty around the Fed’s guidance has kept risk appetite subdued. Any hawkish signal that prompts traders to scale back expectations of continued easing in early 2026 could soften the outlook for energy demand, adding another headwind for Crude in the near term.
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.