- Oil prices remain flat about USD 65 after a sale of USD 12 last week.
- OPEC+ countries are expected to enhance production for the fourth one month in August.
- Facilitating tensions in the Middle East are additional pressure on raw prices.
The prices of WTI raw materials are rising for two weeks, but they remain about USD 12 below the previous Monday Maks, because the peace in the Middle East and the market expectations, that OPEC+ countries will agree on another supply enhance this week, maintain confined attempts.
Trade operations are shown to have tiny profits on Monday, but prices confined in previous days around USD 65.00, and for now bulls have been confined at USD 66.00.
Higher supply and lower demand expectations are burdened with prices
Investors expect highly likely consent to enhance the supply by 411,000 barrels a day for the fourth time in a row this year, which in the context of cushioned global Economic perspectivesIt will probably lead to excessive supply
NBS production in China PMI It revealed that the factory activity has contracted the third month in a row in June, burdened with impoverished demand and uncertain commercial context. The American economy concluded in the first quarter of the year and Euro zone Fighting. These numbers indicate a impoverished demand for oil in the coming months
In addition, the continuous peace between Israel and Iran softened the fears of the potential disturbance of global supply if the conflict spilled into a full regional war. This adds negative pressure on prices.
In Great Britain, state oil, Prax Group holding company, with oil fields on the Shetland Islands and hundreds of gas stations in Great Britain, called administrators forced to accumulate losses, in accordance with press reports of various market sources. The company is expected to announce messages later on Monday.
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 impoverished 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.
