- WTI attracts bulky sales in response to the announcement of Trump tariffs.
- Wednesday’s report on bears on American oil reserves additionally exerts pressure.
- Basically, the weaker USD gives some support for oil prices and limits further losses.
West Texas Intermediate (WTI) USA oil prices extend the slide from the last day from a district worth 72.00 USD or the highest level from February 21, and attract bulky sales service during the Asian session on Thursday. Towans, however, finds some support near the 69.00 USD mark and currently around USD 69.65, still by more than 1% during the day.
The huge tariffs of US President Donald Trump fueled concerns that the expanding trade war can reduce global economic growth and suppress fuel demand. This occurs in a bear published by the US Energy Information Administration (OOT) on Wednesday, which showed that surprising supplies increased with a surprisingly huge 6.2 million barrels last week. It turns out that these are key factors weighing oil prices.
Meanwhile, investors now seem to be convinced that the US -based economic slowdown based on the tariff may force federal reserves (FED) to resume the rate of rates. In addition, anti -risk flow causes a edged decline reports and drags the American dollar (USD) closer to the multi -month low affected in March. This, in turn, offers some support for goods denominated in USD and helps limit losses for oil prices.
Traders now expect an American economic document – with the issuing of ordinary weekly claims of the unemployed and American services of ISM PMI. Data can affect the dynamics of USD prices and provide a black liquid impulse. However, it will focus on commercial development, which should continue to play a key role in the impact on the closest mood of oil prices.
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.
