WTI Price drifted lower to near $58.50 on Tuesday as Iraq resumed oil production at the West Qurna 2 field. The recovery eased supply concerns and influenced global crude markets. Consequently, traders adjusted positions, awaiting further market cues.
The field, operated by Lukoil, produces over 460,000 barrels per day. It represents roughly 0.5% of global oil supply and about 9% of Iraq’s total output. As Iraq is OPEC’s second-largest producer after Saudi Arabia, this restoration has immediate regional and international significance.
Meanwhile, geopolitical factors may provide some support to WTI Price. US President Donald Trump expressed disappointment over Ukrainian President Volodymyr Zelenskiy’s handling of a US peace proposal. Analysts noted that restrictions on Russian energy exports remain uncertain, maintaining some upside risk for crude.
Market participants also awaited the release of the American Petroleum Institute’s (API) weekly crude stock report. Inventory updates often guide short-term pricing, especially after sudden production disruptions like the West Qurna 2 outage.
Investors remain sensitive to US Federal Reserve policy. The Fed is expected to announce a quarter-point rate cut at its December meeting. Lower interest rates generally weaken the US Dollar, which can support higher WTI Price. Furthermore, a softer dollar tends to increase global oil demand by making commodities cheaper for foreign buyers.
Analysts said WTI Price may remain under pressure if global production ramps up faster than expected. However, ongoing geopolitical tensions, especially around Ukraine, could cap losses. In addition, traders continue to monitor broader macroeconomic indicators for energy demand signals.
The oil market also reflected rising expectations for 2025 energy demand. If Fed rate cuts materialize, fuel consumption could accelerate, supporting prices. Conversely, any unexpected recovery in the US dollar may limit gains for WTI Price.
In summary, WTI Price shows mixed influences. Iraq’s oilfield recovery eases immediate supply concerns. Meanwhile, geopolitical risks and US monetary policy provide both upside and downside pressure. Traders will continue watching these factors closely in the coming sessions.
