- Prices of WTI edges up to around USD 62.95 in Wednesday’s early Asian session.
- According to API, oil supplies increased by 2.499 million barrels during the week ended on May 16.
- A usable credit assessment according to Moody’s may limit the advantages of WTI.
West Texas Intermediate (WTI), an American oil reference point, trads around 62.95 USD on Wednesday in Asian commercial hours. WTI prices rapidly after CNN announced that the US interview suggests that Israel is preparing for probably Iranian nuclear facilities.
The United States (USA) obtained a fresh interview, which suggests that Israel is preparing to hit Iranian nuclear facilities, even when US President Donald Trump conducted a diplomatic contract with Tehran, many American officials familiarized with the latest intelligence said CNN. CNN said it was not clear whether Israeli leaders made the final decision to make strikes, citing unnamed officials. Whether and like Israel attacks will most likely be determined by assessing negotiations in the USA with Tehran on a nuclear program.
The American Petroleum Institute’s weekly report (API) showed that the oil reserves in the US in the week ending on May 16 increased by 2.499 million barrels, compared to an escalate of 4.287 million barrels last week. The market consensus estimated that the shares would fall by 1.85 million barrels. Until now, this year oil reserves have increased by over 25 million barrels, according to API data calculations.
Moody reduced the American rating from “AAA” to “AA1”, citing that subsequent US administrations did not reverse balloon deficits and interest costs. This caused questions about the economic health of the world’s largest nation that can limit black gold.
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.
