- WTI prices are losing ground on signs that a political dispute in Libya may be coming to an end.
- Libya’s two legislatures have agreed to jointly appoint a central bank governor, easing a dispute over oil revenues.
- Oil prices fell as the Institute for Supply Management showed U.S. manufacturing remained sluggish.
West Texas Intermediate (WTI) crude oil prices are extending their losses for the second consecutive day, trading around $69.40 per barrel during the Asian session on Wednesday. The fall in crude oil prices is driven by the possible resolution of a political dispute that has halted Libyan exports and concerns about slowing global demand growth.
Reuters reported that Libya’s two legislatures agreed on Tuesday to jointly appoint a central bank governor, potentially easing the conflict over control of the country’s oil revenues that sparked the recent dispute. The potential deal to restore oil supplies could result in more than 500,000 barrels per day returning to the market.
Market sentiment was further dampened by data from the Institute for Supply Management, which showed that US manufacturing remained sluggish, despite a slight improvement in August from an eight-month low in July. The US ISM manufacturing PMI rose to 47.2 in August from 46.8 in July, falling short of market expectations of 47.5. This marks the 21st contraction in US factory activity in the past 22 months.
The world’s largest crude importer, China, showed manufacturing activity fell to a six-month low in August, with factory prices falling significantly. This has prompted Chinese policymakers to move ahead with plans to increase stimulus to households.
Oil prices are also under pressure from plans by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to increase production in the next quarter. OPEC+ is set to push ahead with a planned increase in oil output starting in October. Eight OPEC+ members are set to increase production by 180,000 barrels per day (bpd) next month.
WTI Oil FAQs
WTI crude oil is a type of crude oil sold on international markets. WTI stands for West Texas Intermediate, one of three main types that include Brent and Dubai crude. WTI is also known as “light” and “sweet” for its relatively low gravity and sulfur content, respectively. It is considered a high-quality oil that is easily refined. It is sourced in the United States and distributed through the Cushing hub, considered “the pipeline crossroads of the world.” It is a benchmark for the oil market and the price of WTI is frequently quoted in the media.
Like all assets, supply and demand are the main factors determining the price of WTI crude oil. As such, global growth can be a driver of increased demand and vice versa in the case of weak global growth. Political instability, wars and sanctions can disrupt supply and impact prices. Decisions by OPEC, a group of large oil producing countries, are another key driver of price. The value of the US Dollar influences the price of WTI crude oil, as oil is primarily traded in US Dollars, so a weaker Dollar can make oil more affordable and vice versa.
The 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 fluctuations in supply and demand. If the data show a decrease in inventories, it may indicate an increase in demand, which would push up the price of oil. An increase in inventories may reflect an increase in supply, which pushes down prices. The API report is published every Tuesday, and the EIA report the following day. Their results are usually similar, with a difference of 1% between them 75% of the time. The EIA data is considered more reliable because it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 13 oil-producing nations that collectively decide on member countries’ production quotas at biennial meetings. Their decisions often influence WTI oil prices. When OPEC decides to reduce quotas, it can restrict supply and drive up oil prices. When OPEC increases production, the opposite effect occurs. OPEC+ is an expanded group that includes ten other non-OPEC countries, most notably Russia.
Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.