- WTI enters the stubborn phase of consolidation near a two -week height among mixed basic tips.
- The optimism of the US-China trade agreement helps reduce the concerns about the requirements and supports black fluid.
- Combating fears from recession in the USA and Jastrzębie Pause Fed benefits USD and limits the goods.
West Texas Intermediate (WTI) oil prices in the USA will augment to almost two weeks during an Asian session on Monday, although bulls try to find acceptance or take a momentum outside the $ 61.00 sign. The goods are currently trading with a delicate positive bias just below the aforementioned handle, because traders are eager to wait for the common statement of the US and China for trade talks.
The White House announced on Sunday that at the weekend a trade agreement was reached with China after a meeting in Switzerland, Switzerland. Positive development helps to alleviate the fears of demand and acts as a wind with crude oil prices. However, none of the parties mentioned the agreement on the reduction of American tariffs of 145% for Chinese goods and 125% tariffs in China for American goods. This, in turn, forces the persistent traders to refrain from positioning for any significant advantages and wait for further details before placing fresh directional plants.
Meanwhile, commercial optimism helps relieve market fears regarding US recession. This, along with the Hawkish Pause, Federal Reserve (FED) at the beginning of this month, helps the American dollar (USD) to stand near many weeks of achievement on Friday. In addition, the OPEC+ decision to accelerate production growth still causes concerns about the surplus and contributes to limiting the advantages of oil prices. To say, expectations of closer supplies in the US, along with persistent geopolitical risk, act like a wind for a black liquid.
This, in turn, justifies caution before confirmation that the reflection of the goods from the area of the psychological sign 55.00 USD or almost a monthly low affected last Monday, they ran out of steam. Traders are now waiting for the publication of American inflationary data, which, with the appearance of Fed Chairman Jerome Powell, will lead a zloty on Thursday and provide a significant impulse for 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 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.
