- WTI calls on US President Donald Trump OPEC+ to limit crude oil prices.
- Trump reiterated his demand for OPEC+ to lower oil prices to hurt Russia’s finances and end the Ukraine war.
- The White House confirmed that Colombia agreed to all terms, following Trump’s tariff threat.
The price of West Texas Intermediate (WTI) oil reversed the gains made in the previous session, trading around $73.90 per barrel during Asian trading hours on Monday. Crude oil prices are facing pressure as US President Donald Trump raised trade concerns, urging OPEC+ (Regulation of the Petroleum Exporting Countries and its allies) to lower crude prices.
On Friday, Trump repeated his demand for OPEC+ to lower oil prices in an attempt to hurt oil-rich Russia’s finances and help end the war in Ukraine. Trump stated: “One way to stop it quickly is for OPEC to stop making so much money and bringing down the price of oil… The war would stop immediately.” However, OPEC and its allies, including Russia, have yet to respond to Trump’s call, with OPEC+ delegates pointing to a plan to increase oil production in April.
President Trump also warned of taxes, tariffs and sanctions on Russia “and other participating countries” if an agreement to end the Ukraine war is not reached soon. In response, Russian President Vladimir Putin proposed a meeting with Trump to discuss war and energy prices.
Raw supply concerns also emerged on Sunday when Trump announced plans to impose a 25% tariff on all Colombian goods entering the United States (US), with intentions to increase it to 50% within a week. The move was followed by Colombia’s refusal to allow two US military planes, carrying deported migrants, to land.
In retaliation, Colombia, a major trading partner and oil supplier, threatened to impose a tariff on American imports. The United States is the largest buyer of Colombia’s crude exports, buying 183,000 barrels per day (BPD) in 2024, or 41% of Colombia’s total exports, according to data from analytics firm KPLER. Additionally, U.S. Energy Information Administration data shows the United States imported 28,000 b/d of crude and products from Colombia in 2023.
In a surprise development, the White House announced on Monday that “Colombia has agreed to all of President Donald Trump’s conditions, including the unconditional admission of all illegal aliens from Colombia who have returned from the United States.”
WTI Oil Questions and Answers
WTI Oil is a type of crude oil that is sold in international markets. WTI stands for West Texas Intermediate, and is one of three main types including Brent and Dubai rough. WTI is also referred to as “light” and “sweet” due to its low gravity and sulfur content respectively. It is considered a high-quality oil that is easily improved. It is sourced in the United States and distributed through Cushing Center, considered “the world’s leading road liners.” It is a benchmark for the oil market, and the WTI price is frequently quoted in the media.
Like all assets, supply and demand are the main drivers of the price of oil at WTI. As such, global growth can be a driver of increased demand and vice versa of weak global growth. Political instability, wars and sanctions can disrupt supply and influence prices. Decisions by OPEC, a group of major oil-producing countries, are another major price driver. The value of the US dollar affects the price of crude oil at WTI, since oil is mostly traded in US dollars, so a weaker US dollar can make oil more affordable and vice versa.
Weekly oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) influence the price of WTI oil. Changes in inventories reflect volatility and demand. If the data shows a decline in inventories, it can indicate increased demand, causing the price of oil to increase. Higher inventories can reflect increased supply, causing lower prices. The API report is published every Tuesday and impact assessments are published the following day. Their results are usually similar, falling within 1% of each other 75% of the time. EIA data is considered more reliable, because it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 oil-producing countries that collectively decides production quotas for member countries at meetings twice a year. Their decisions often affect WTI oil prices. When OPEC decides to reduce quotas, it can tighten supply, causing oil prices to increase. When OPEC increases production, it has the opposite effect. OpeC+ refers to an expanded group that includes ten additional non-OPEC members, most notably Russia.
