Insights 
VT 
West Texas Intermediate (WTI) oil prices declined on Friday during the early European session. Trading at $60.07 per barrel, WTI dipped from Thursday’s close of $60.12, while Brent crude decreased to $63.95 from $64.00.
WTI is a high-quality crude oil originating from the US, classified as “light” and “sweet” due to its low gravity and sulfur content. It serves as a benchmark for the oil market, with its price frequently reported in the media.
Factors Influencing WTI Prices
Supply and demand are the main factors influencing WTI oil prices. Political instability, wars, and sanctions can affect supply, while OPEC’s production decisions also impact WTI prices significantly.
Both the American Petroleum Institute (API) and the Energy Information Agency (EIA) publish weekly oil inventory reports, which influence oil prices. A drop in inventories often suggests increased demand, leading to price increases, whereas higher inventories suggest increased supply, pushing prices down. The EIA is considered more reliable due to its status as a government agency.
OPEC, comprising 12 oil-producing nations, decides production quotas at biannual meetings that affect WTI prices. The expanded group, OPEC+, includes non-OPEC members like Russia, further influencing global oil prices with their collective decisions.
We are seeing West Texas Intermediate crude oil prices dip to around $60.07, reflecting a bearish sentiment in the market. This weakness follows this week’s Energy Information Administration (EIA) report on October 29, which showed a surprise inventory build of 2.5 million barrels when a draw was expected. Such builds often signal that supply is outpacing current demand.
Global Economic Impact on Oil Prices
These price levels are influenced by worries about global economic growth, which directly impacts oil demand. The International Monetary Fund’s recent outlook trimmed its 2026 global growth forecast to 2.9%, citing persistent sluggishness in key European and Asian markets. For traders, this raises red flags about future energy consumption.
On the supply side, all eyes are turning toward the upcoming OPEC+ meeting scheduled for early December. After holding production quotas steady through most of 2025, there is growing speculation about whether the group will announce deeper cuts to prop up prices. Any statements from member nations in the coming weeks will create volatility.
We must also consider the strength of the US Dollar, as oil is priced in dollars globally. The US Dollar Index (DXY) has remained firm, hovering around the 107 mark, making crude oil more expensive for holders of other currencies. This sustained dollar strength could continue to act as a headwind for any significant price recovery.
Looking back, these $60 levels are a world away from the volatility and price spikes we saw in the 2022-2023 period. For derivative traders, this environment suggests considering strategies that benefit from range-bound trading or further downside, such as buying puts or establishing bear call spreads. Implied volatility may increase as we approach the December OPEC+ meeting, presenting opportunities for those selling premium.
