WTI crude slipped to around $60.70 during Wednesday’s Asian trading session, pressured by significant increases in U.S. crude stockpiles. Meanwhile, President Trump assured Iranian protesters that support is forthcoming.
West Texas Intermediate (WTI), the U.S. crude oil benchmark, was trading near $60.70 during Wednesday’s Asian session, as prices edged lower amid rising supply pressures. WTI has been pressured by Venezuela restarting oil exports and the latest American Petroleum Institute (API) report showing a large build in U.S. crude inventories, while traders await the official Energy Information Administration (EIA) stockpile figures later in the day.
According to Reuters and industry sources, Venezuela has begun reversing recent production cuts made under its previous U.S. oil embargo, allowing crude exports to resume. Two supertankers carrying roughly 1.8 million barrels each departed Venezuelan waters, potentially marking the first shipments under a 50‑million‑barrel supply arrangement with Washington, following U.S. control of the country’s exports after political developments.
U.S. crude inventories saw a significant increase last week, with the American Petroleum Institute (API) reporting a build of 5.27 million barrels for the week ending January 9. This contrasts sharply with the previous week’s drawdown of 2.8 million barrels and defies market expectations, which had forecasted a 2 million barrel decline.
Despite the growing stockpiles, ongoing geopolitical tensions in Iran—a key oil producer—could provide support for WTI prices. U.S. President Donald Trump canceled all planned meetings with Iranian officials and pledged assistance to protesters amid reports of a severe crackdown by Iranian security forces, which has resulted in hundreds of deaths. Trump has repeatedly warned that the U.S. would intervene if the Iranian government continues to target demonstrators.
Sources: Investing
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