WTI crude oil reached a two-week high of around $63.50 during Friday trading in Asia. The rise is partly due to optimism regarding a trade agreement between the United States and the European Union, coupled with new US sanctions on Iranian oil exports which intensify supply concerns. US President Trump and Italian Prime Minister Meloni met to discuss potential resolutions to US-European trade tensions. Trump’s comments indicate confidence in forming a trade agreement, as the US holds resources in demand globally.

Impact Of Us Sanctions

US sanctions on Iran under the ‘maximum pressure’ policy continue to impact the WTI price by raising supply concerns. The US is committed to sanctioning Iran and any evaders to prevent Iran from earning illicit oil revenues. The Energy Information Administration’s report showed an increase in US crude oil stockpiles by 515,000 barrels for the week ending April 11. The market had anticipated a storage rise of 400,000 barrels. WTI is one of three major types of crude oil, characterised by its low gravity and sulphur content, sourced in the US. Supply and demand dynamics, geopolitical stability, and decisions by groups like OPEC and currency value influence WTI’s price significantly. Weekly oil reports from the API and EIA affect WTI pricing, reflecting supply-demand changes. If inventories decrease, indicating heightened demand, oil prices tend to rise; conversely, increased inventories can lead to lower prices.

Influence Of Trade Diplomacy

This latest upward movement in WTI crude towards $63.50 can largely be interpreted through two lenses. First, international diplomacy has offered reassurance to some traders, particularly with recent talks between Trump and Meloni showing alignment on addressing trade strains. Although concrete outcomes haven’t materialised yet, Trump’s tone implied he sees the US as holding leverage, especially through its natural resources. That, in itself, introduces a subtle undertone of optimism into the market—especially for those closely watching trade-dependent pricing mechanisms. On the supply side, fresh US sanctions targeting Iran come at a time when fears around tightened exports were already simmering. These restrictions represent a continuation of what’s already been labelled the ‘maximum pressure’ stance—an approach that hasn’t shown any signs of loosening. The likelihood of Tehran being excluded further from legitimate oil markets carries downstream effects, most notably growing uncertainty about how smoothly global supply chains can cope. That said, the EIA’s report delivered a small curveball: stockpiles climbed by 515,000 barrels for the week through April 11—a touch higher than consensus estimates, which pointed to 400,000. Although that might suggest looser supply conditions locally in the US, the figure wasn’t bloated enough to offset fears of broader disruption flowing from geopolitical shifts. It’s worth noting that markets can sometimes take these inventory builds in stride when larger macro forces, such as Iranian sanctions or potential trade shifts, are in motion. The nuanced nature of pricing continues to depend on immediate, measurable stock levels as well. The American Petroleum Institute (API) and Energy Information Administration (EIA) updates remain essential for understanding trader reactions. When stockpiles shrink, it tends to spark rally behaviour. Storage increases often act as a mild brake. However, if global supply is under pressure for extrinsic reasons, these weekly variations can temporarily take a back seat to broader future expectations. Create your live VT Markets account and start trading now. اکنون تجارت را شروع کنید – برای ایجاد حساب VT Markets زنده خود اینجا را کلیک کنید