- The WTI BAJA while the markets evaluate the impact of the automotive tariffs of US President Donald Trump.
- Reliance India de India, the world’s largest oil refinery, plans, according to reports, stop Venezuelan oil imports.
- President Trump has signed an order by imposing a 25% tariff on cars imports, further intensifying global commercial tensions.
The price of crude oil West Texas Intermediate (WTI) stops its three -day recovery, quoting around $ 69.20 per barrel during the European hours of Thursday. The crude oil prices fall slightly while the markets evaluate the impact of the automotive tariffs of US President Donald Trump, along with the ongoing concerns about the global interruptions of the supply due to US sanctions on Venezuelan and Iranian oil buyers.
In response to the last announcement of US tariffs, Reliance Industries of India, operator of the world’s largest refining complex, plans, according to reports, stop imports of Venezuelan oil, further amplifying concerns about the stability of the global supply.
President Trump signed an order by imposing a 25% tariff on cars imports, even more climbing global commercial tensions. The tariffs will enter into force on April 2, with the collection starting the next day. Despite this, some analysts believe that tariffs could indirectly support oil prices.
Reuters quoted Tony Sycamore, a market analyst in IG, who suggested that “the increase in new cars prices due to tariffs will slow down the change to newer and more efficient models in fuel”, which could sustain the demand for crying oil.
On Wednesday, oil prices gained around 1%, driven by signs of strong demand and an adjusted global supply. The US Energy Information Administration (EIA) reported that crude oil reserves fell to 3.34 million barrels last week, the greatest decrease since December, while gasoline stocks also decreased.
The US agreements with Russia and Ukraine, which could lead to a possible relief of American sanctions on Russian oil, have exerted downward pressure on crude oil prices. In addition, concerns about a possible increase in OPEC+ supply (organization of oil export countries and its allies) in May could weigh slightly in the market. Meanwhile, Iraq plans to expand its oil production capacity beyond 6 million barrels per day (BPD) by 2029.
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.
