Insights 
VT 
WTI oil prices saw an increase during the early European session on Wednesday, trading at $58.23 per barrel, up from $57.56 on Tuesday. Brent crude prices also rose, moving from $61.39 to $62.08.
WTI, a type of crude oil known as West Texas Intermediate, is characterised by its low gravity and sulfur content, making it high-quality and easily refined. Sourced in the United States, it’s often used as a benchmark for oil market prices.
Factors Influencing WTI Oil Prices
The price of WTI oil is influenced by supply and demand, global growth, political factors, and the value of the US Dollar. Decisions made by OPEC, a group of major oil-producing nations, also impact prices, alongside global economic indicators.
Weekly oil inventory reports from the American Petroleum Institute and Energy Information Agency affect WTI prices by indicating supply and demand levels. A drop in inventories may signal rising demand, leading to an increase in oil prices, while higher inventories may indicate increased supply.
OPEC’s decisions on production quotas play a significant role in determining WTI oil prices. The organisation’s actions can influence supply, thus impacting global oil prices, with both OPEC and OPEC+ affecting these dynamics.
With WTI oil advancing to $58.23 per barrel, we see this as a sign of strengthening demand in the market. The latest Energy Information Administration (EIA) report supports this view, showing a surprise drawdown in crude inventories of 2.1 million barrels last week against expectations of a build. This suggests consumption is outpacing supply, providing a solid floor under current prices.
Market Outlook and Strategy
Looking at the bigger picture, global growth forecasts for the final quarter of 2025 remain sluggish but have avoided a deep recession, which should keep demand steady. We are also watching the US Dollar, which has softened slightly to 104.5 on the DXY index in recent weeks. A weaker dollar typically makes oil more affordable for buyers using other currencies, adding to the bullish pressure.
The upcoming OPEC+ meeting in late November is the most significant event on our radar. Given that prices are still well below the $80-90 range seen through much of 2023 and 2024, we anticipate the group will reaffirm or even deepen production cuts. Any statements from key members in the coming weeks will create volatility and should be monitored closely.
For derivative traders, this environment suggests that buying call options is a prudent strategy to capture potential upside. We see value in near-term contracts, particularly the December-expiry calls with strike prices around $60 and $65. This allows us to profit from a potential price rise through the holiday season and following the OPEC+ meeting.
