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Latest Trends in WTI Crude Oil Prices: Impact of Trade Tensions and Geopolitical Risks on the Market

Latest Trends in WTI Crude Oil Prices: Impact of Trade Tensions and Geopolitical Risks on the Market

WTI Crude Oil Price Rises Near $62 Amid Trade Tensions and Middle East Situation

WTI Price Rises 2.7% to $61.90 in Asian Market

On June 2, 2025, West Texas Intermediate (WTI), a leading U.S. crude oil benchmark, rose to around $61.90 per barrel during Asian trading hours, marking a 2.7% increase on the day. This rise is driven by renewed trade tensions and geopolitical risks in the Middle East. Market participants are closely watching how these risk factors affect the global oil supply and demand balance.

(Reference) Reuters: President Trump and President Xi Likely to Talk Soon on Trade

Developments in US-China Trade Talks and President Trump's Statements

U.S. President Donald Trump has pointed to China's violations of trade agreements and has taken a tough stance on tariff policies. In response, U.S. Treasury Secretary Scott Bessent announced that President Trump and Chinese President Xi Jinping plan to discuss trade issues soon. Attention is particularly focused on efforts to resolve disputes over critical minerals.

OPEC+ Decides on Consecutive Production Increases, Raising Oversupply Concerns

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, have decided to increase production by 411,000 barrels per day in July. This marks the third consecutive monthly increase following those in May and June. The move is explained as a measure supported by stable economic outlooks and currently low crude oil inventory levels.

(Reference) OPEC Official Statement (June 2025)

This production increase may suppress prices in the short term, putting competitive pressure especially on U.S. shale oil producers. However, supply-demand balance and geopolitical risks will continue to influence price directions, adding uncertainty to future market movements.

Cautiousness Ahead of ISM Manufacturing PMI Release

The market is also awaiting the release of the U.S. May ISM Manufacturing Purchasing Managers' Index (PMI). If results exceed expectations, the dollar may strengthen, putting downward pressure on WTI prices priced in USD. Conversely, disappointing results could weaken the dollar and support higher crude prices.

(Reference) Trading Economics - U.S. Manufacturing PMI Latest Data & Trends

Characteristics of WTI Crude Oil and Its Role in the Market

WTI is a light, sweet crude oil produced in the United States, known for its low sulfur content and ease of refining. It is distributed through the Cushing, Oklahoma hub and serves as one of the main price benchmarks in the global crude oil market. WTI prices are frequently reported by media and heavily influence decisions by investors and companies.

(Reference) EIA: WTI Crude Oil Price Trends

Outlook and Impact on Investors

As long as international trade policy remains uncertain and geopolitical risks in the Middle East persist, WTI prices are expected to remain volatile. Investors need to respond sensitively to these political and economic developments, balancing short-term trading strategies with long-term investment decisions. Additionally, OPEC+'s production policies and U.S. economic data releases will be key price drivers, making continuous information gathering and risk management essential.

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※This article is intended for informational purposes only and does not constitute specific investment advice. Final investment decisions are the responsibility of the individual.

This article summarizes recent WTI crude oil price movements driven by U.S.-China trade tensions, Middle East geopolitical risks, and OPEC+ production increases. It highlights market caution before the U.S. ISM Manufacturing PMI release and explains WTI’s role as a key benchmark. The content helps investors understand factors affecting oil price volatility and manage risks.

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DANIEL JOHN GRADY
Author

Daniel John Grady is a financial analyst and writer. He is a former CFO with a degree in Financial Management and has been published in both English and Spanish. With over ten years of equities trading experience, he is primarily interested in foreign exchange and emerging markets with a focus on Latin America.

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