- WTI Ropa retides after 75.54 USD on Thursday, pressing to alleviate the geopolitical risk.
- Geneva talks between Iran and EU diplomats signal diplomatic shoot, cooling the strait of Hormuz’s fears.
- Trump delays the decision about the US direct involvement, which focusing on the market on the basis of supply rules.
Crude oil West Texas Intermediate (WTI) trades lower on Friday, falling to around USD 73.80 for a barrel after touched on Thursday the highest level of 75.54 USD.
The decrease reflects the reduced geopolitical risk after diplomatic conversations between Iran and the European powers in Geneva, which helped give up the risk bonus built on tensions in the Middle East.
WTI will slip as a Geneva diplomacy reassures HORMUZ fears, Trump delays the action
EU diplomats from France, Germany, Great Britain and the EU met with the Iranian Foreign Minister Abbas Araghchi in the first official commitment since the war between Israel and Iran. Although the arms suspension agreement was not reached, the meeting signaled mutual preference for diplomacy against confrontation.
This helped tranquil the investors’ concerns about potential supply disturbances, especially around the Hormuz Strait – a key transit point for almost 20% of global oil parcels.
Talks followed the comments of the senior Iranian legislator Behnam Saeedi, who said that Tehran may consider closing the strait “if significant national interests were threatened”, but emphasized that this would be the last last resort. Although the risk remains, the lack of modern threats during talks in Geneva helped reduce variability in raw markets.
At the same time, President Trump delayed the decision about the direct military involvement of the USA, which focusing on the market back to the base of supply and broader sentiments.
Oil inventory data is painted by a stronger supply of supply
On the front of the data, American spare data published this week added stubborn pressure. The American Petroleum Institute (API) reported a 10.13 million barrels per week, while the energy information administration (OIA) showed an even greater decrease by 11.47 million barrels, with both numbers significantly exceeding expectations and indicate closer delivery conditions in the US.
Technical analysis: WTI consolidates after obtaining over 22% in June
From a technical point of view, WTI remains above key straight average movable (SMA), with a 100-day and 200-day SMA offers solid support, respectively 65.78 USD and 68.40 USD.
Initial support is evident in the psychological sign of 72.00 USD, followed by 61.8% of Fibonacci withdrawal of the decline in January and April in the amount of USD 69.98. The resistance is at most $ 75.54 in June, and the breakthrough above reveals the highest January of nearly 79.37 USD.
The relative force indicator (RSI) floats slightly above 69, which suggests slightly less bought conditions that could cause a compact -term withdrawal.
Daily chart of WTI oil
In general, oil consolidates recent profits, because diplomatic progress and exact American supplies are dragging the market in opposite directions. Traders will remain vigilant about further achievements from Geneva and regional headers for tips on the next oil movement.
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 penniless 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.
