- The WTI remains above $ 64.00/barrel on Monday, a maximum of seven weeks.
- Crude oil markets are betting on summer trips and relaxation of commercial tensions between the US and China will boost demand.
- The last increase in OPEC production has not yet affected global supplies, but could come soon, and WTI prices are ready for another downward turn.
West Texas Intermediate (WTI) crude oil prices (WTI) of the US are testing new seven -week maximum on Monday, exceeding $ 64.00 per barrel. Energy operators are betting on a double increase in demand due to the summer travel season and an eternally elusive increase in the demand of China’s barrels to compensate for a possible excess as the organization of oil export countries (OPEC) increases the fees of crude oil production.
Commercial conversations between the US and China are ongoing in London this week, and investors expect the Trump administration to be removed from removing the trigger on tariffs and commercial restrictions. President Donald Trump has made a habit of threatening, imposing and then canceling or delaying high import taxes during the first months of his second term. Investors expect a similar pattern to emerge from negotiations between the US and China in a neutral field, after several weeks of intensified commercial war rhetoric.
The summer trip season is expected to trigger the demand for crude oil, and energy operators expect a successful commercial resolution to finally arouse that increase in the demand of China barrels that have been waiting to see for years. China’s crude oil demand stagnated in 2020 and has not yet returned to the pattern of annual consumption increases that occurred during the 2010.
OPEC has begun to increase crude oil production in an attempt to recover market share. The crude oil poster reduced production fees last year in an effort to maintain supported energy prices, but now the global barrel producers is ready to stop losing money in abundance. Analysts have pointed out that despite the increase in OPEC production limits, excess supply has not yet affected energy markets, and investors hope that the increases in demand will drag any risk of supply imbalance before they begin.
Price of the price of crude oil
WTI barrel offers have reached seven -week peaks about $ 64.50, however, the most rise potential remains limited since the 200 -day exponential mobile average (EMA) sinks at $ 68.00, marking a firm technical roof. The short -term price action has risen above the 50 -day EMA about $ 62.80, however, the prices of crude oil are perfectly positioned for another bearish turn in a repetition of the April technical rejection from the 200 -day EMA.
WTI DAILY GRAPH
WTI FAQS oil
WTI oil is a type of crude oil that is sold in international markets. WTI are the acronym of West Texas Intermediate, one of the three main types that include the Brent and Dubai’s crude. The WTI is also known as “light” and “sweet” by its relatively low gravity and sulfur content, respectively. It is considered high quality oil that is easily refined. It is obtained in the United States and is distributed through the Cushing Center, considered “the crossing of the world.” It is a reference for the oil market and the price of WTI is frequently traded in the media.
Like all assets, supply and demand are the main factors that determine the price of WTI oil. As such, global growth can be a driver of the increase in demand and vice versa in the case of weak global growth. Political instability, wars and sanctions can alter the offer and have an impact on prices. OPEC decisions, a group of large oil -producing countries, is another key price factor. The value of the US dollar influences the price of WTI crude oil, since oil is mainly traded in US dollars, so a weaker dollar can make oil more affordable and vice versa.
Weekly reports on oil inventories published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) influence the price of WTI oil. Changes in inventories reflect the fluctuation of supply and demand. If the data show a decrease in inventories, it can indicate an increase in demand, which would raise the price of oil. An increase in inventories may reflect an increase in supply, which makes prices lower. The API report is published every Tuesday and that of the EIA the next day. Their results are usually similar, with a 1% difference between them 75% of the time. EIA data is considered more reliable, since it is a government agency.
The OPEC (Organization of Petroleum Exporting Countries) is a group of 13 nations oil producing that collectively decide the production quotas of member countries in biannual meetings. Their decisions usually influence WTI oil prices. When OPEC decides to reduce fees, it can restrict the supply and raise oil prices. When OPEC increases production, the opposite effect occurs. The OPEC+ is an expanded group that includes another ten non -members of the OPEC, among which Russia stands out.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
