- WTI Steadie price after an boost in almost 4% on Thursday.
- Facilitating commercial tensions between the main crude oil consumers provides support for oil.
- Oil prices encounter winds because OPEC+ signals plan to boost production.
West Texas Intermediate (WTI) Edge oil prices on Friday in Asian commercial hours, trading nearly USD 59.80 for a barrel after publishing almost 4% growth in the previous session. The rally was powered by relieving commercial tensions between the main oil consumers – United States (USA) and China – and an announcement of a “breakthrough” trade agreement between the USA and Great Britain.
The Secretary of the Treasury of the United States Scott Bessent is to meet with Deputy Prime Minister of China He Lifeng in Switzerland on May 10, aimed at resolving the ongoing commercial disputes that suppressed the global demand for oil.
In separate development, US President Donald Trump and the Prime Minister of Great Britain Keir Starmer suggested that Great Britain (Great Britain) agreed to reduce the US import tariffs to 1.8% of 5.1%. In turn, the United States reduced the tariffs to British cars, maintaining 10% of the obligation on most other goods.
Despite the recent profits, oil prices are in the face of significant winds. OPEC and its allies (OPEC+) plan to boost oil production, which can charge prices. According to Reuters, the total OPEC production fell slightly in April, when the lower production in Libya, Venezuela and Iraq is planned in a different place.
Meanwhile, American sanctions for two smaller Chinese refiners – accused of the purchase of Iranian oil – were disturbed by their activities, and sources indicating that refineers are now selling products under different names. This means escalation in the Washington pressure campaign against Iran, because the US is trying to reduce oil income in Tehran and press on renewed nuclear negotiations.
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 indigent 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.
