- WTI attracts some DIP buyers on Tuesday, although it lacks powerful observation.
- Combating supply disorders and trade concerns.
- The Geopolitical Risk and Bear Bonus of USD act as a wind for a black liquid.
West Texas Intermediate (WTI) USA oil prices boost during the Asian session on Tuesday, although the endocrine growth is lacking stubborn with belief. The goods remain below the two -week touches last Friday and currently trading around 62.80-62.85 USD, which is just over 0.30% during the day.
Signs of progress in conversations about a nuclear agreement between the USA and Iran helped to relieve the fears of delivery, which in turn were seen as a key factor per night during the night slide at oil prices. In fact, the United States and Iran agreed on Saturday to start a discussion at expert level to design a frame for a potential nuclear agreement. Expert meetings will be planned on Wednesday, and the complementary session is planned for Saturday to assess progress.
Adding to this worries that the trade war would cause a global recession, and the demand for the fuel of dents will contribute to limiting the running of the black liquid. However, the geopolitical risk bonus remains in the game because of the prolonged war of Russia-Ukraina. This, along with the basic mood surrounding the American dollar (USD), acts as a wind for USD denominated goods, including oil prices.
Meanwhile, Trump accused the chairman of the Federal Reserve (Fed) Jerome Powell of not moving quickly enough to lower interest rates. In addition, the White House suggested that Trump and his team are studying whether they could leisurely down Powell, raising doubts about the independence of the Fed. This is a complement to investors’ trust in the American economy and does not aid registered on USD on Monday.
The aforementioned fundamental background justifies caution before the aggressive directional plants around crude oil prices. Traders can also decide to spend Flash PMIS on Wednesday on tips on global economic health, which in turn should provide a significant impulse for the goods.
FAQ of WTI oil
WTI oil is a type of crude oil sold on international markets. WTI means West Texas Intermediate, one of the three main types, including Brent and Dubai oil. WTI is also referred to as “light” and “sweet” due to its relatively low gravity and sulfur content. It is considered high quality oil that can be easily refined. He comes from the United States and distributed through Cushing Hub, which is considered “the intersection of the world pipelines”. This is a reference point for the oil market, and the price of WTI is often cited in the media.
Like all assets, supply and demand are the key factors for the price of WTI oil. As such, global growth can be the driving force of increased demand and vice versa for needy global growth. Political instability, wars and sanctions can interfere with supply and affect prices. OPEC decisions, groups of the main oil -producing countries, are another key driving force. The value of the American dollar affects the price of WTI oil, because oil is mainly traded in American dollars, which is why a weaker American dollar can make oil more accessible and vice versa.
Weekly reports with oil reserves published by the American Petroleum Institute (API) and the Energy Information Agency (EEA) affect the price of WTI oil. Changes in wrestling reflect the variable supply and demand. If the data shows a decrease in stocks, it may indicate increased demand by raising the price of oil. Higher supplies can reflect the increased supply by lowering prices. The API report is published every Tuesday, and EIA the next day. Their results are usually similar, at a distance of 1% 75% of time. The OEP data is considered more reliable because it is a government agency.
OPEC (organization of oil exporting countries) is a group of 12 pus producing nations, which together determine production amounts for member states at meetings twice a year. Their decisions often affect WTI oil prices. When OPEC decides to reduce the amounts, it can tighten supply by raising oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an extended group, which includes ten additional members outside OPEC, of ​​whom Russia is most noteworthy.
