- The oil price is a new four -year low level near $ 58.80 in the midst of increasing concerns about the global economic appearance.
- US President Trump brought a total of 54% tariffs to China.
- Trump also announced 10% basic tariffs for all trade partners.
West Texas Intermediate (WTI) spreads to the lowest level seen in four years and to a level of nearly $ 58.80 of the day, and after Monday, some intertwined losses reclaim some intertwined losses. The oil price is still close to $ 60,40 during writing.
Black Gold has been faced with a significant sales pressure since the first day of April, because the financial market participants are worried about the global economic appearance after the implementation of mutual tariffs by US (USA) President Donald Trump on Wednesday. Trump sweeps almost half of the tariffs of what they received from the United States in addition to trade partners, 10% of the universal 10% basic import tax.
Since investors expect higher tariffs by the United States and the counter measures of other nations will be inflationary and will focus on global economic productivity, the scenario is unfavorable for the appearance of oil demand.
The imposition of worse taxes on Asian peers, such as China and India, seems to be a major blow to the oil price. The US applied to China for a total of 34% of 34%, 34% mutual tariff and 20% tax for pouring 20% Fentanil into the American economy. It should be noted that China is the world’s largest oil importer.
WTI OIL FAQ
WTI oil is a type of crude oil sold in international markets. WTI represents West Texas Intermediate, one of the three main species, including Brent and Dubai crude oil. WTI is also called “Light” and “Sweet” due to its low gravity and sulfur content, respectively. It is considered an easily refined high quality oil. It is supplied in the United States and is distributed through Cushing Hub, which is accepted as the “Pipeline of the World”. It is a criterion for the oil market and the price of WTI is often quoted in the media.
Like all beings, supply and demand are the main driving forces of WTI oil price. Therefore, global growth may be the driving force of increasing demand and can be the opposite for weak global growth. Political instability, wars and sanctions may be supply and influence. The decisions of OPEC, a group of large oil -producing country, are another important driving force of the price. The value of the US dollar affects the price of WTI crude oil, because the oil is mainly traded as US dollar, so a weaker US dollar can make oil more affordable and vice versa.
The weekly oil inventory reports published by the American Oil Institute (API) and Energy Information Agency (EIA) affect WTI oil price. Changes in inventories reflect the fluctuating supply and demand. If the data shows a decrease in stocks, it may show increasing demand and increase the price of oil. Higher stocks can reflect the increasing supply and reduce prices. API’s report is published every Tuesday and the next day by EIA. The results are usually similar, falling to 1% of 75% of the time. Since it is a state institution, EIA data is considered more reliable.
OPEC (Organization of Oil Export countries) is a group of 12 oil -producing countries that decide on production quotas for member states twice a year. Decisions usually affect WTI oil prices. When OPEC decides to lower quotas, it can tighten the supply by increasing oil prices. When OPEC increases production, it has the opposite effect. The OPEC+refers to a expanded group containing the most remarkable Russia, which is the ten extra OPEC member.
