- WTI meets some supply during the Asian session, but does not follow.
- Concerns about the economic sprinkle of Trump’s tariffs are reversed for the commodity.
- Geopolitical risks should move as a tail wind for black liquid in the middle of a wide range of USD.
West Texas Intermediate (WTI) US crude oil prices attracted some sellers after a Asian session rising to $ 69,00, but went down. The commodity is currently trading around the $ 68.80 region, it has not changed almost throughout the day in the midst of the mixed basic tips and remains at a striking distance with a very weekly touch last Wednesday.
US President Donald Trump’s aggressive trade tariffs are concerned that global growth and tooth fuel demand may be like a head wind for black liquid. In addition, the OPEC+ Group will start the monthly increase in oil production in April, and the group will continue to increase oil production in May, which is another factor that reversed for the commodity.
Meanwhile, Trump warned Russian oil buyers that he could apply secondary tariffs to Russian oil buyers if he thinks that Moscow prevented his efforts to end the war in Ukraine. Trump also threatened Iran with bombing and secondary tariffs if he did not make any agreement on the nuclear program. This increases the risk of potential supply deterioration from Russia and Iran, which is seen to support crude oil prices.
In addition, the increasing acceptance of the Federal Reserve (FED) that a tariff -oriented economic slowdown will continue to a ratio -cut cycle when the US dollar (USD) dragged a lower ratio for the third straight day. This may contribute to limiting the disadvantage for the commodity in USD, which can make it cautious to wait for a strong follow -up sales before confirming that the last movement is over.
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.
