- The WTI attracts new sellers at the beginning of a new week in the midst of the decrease in fears due to supply interruptions.
- A bassist USD could help limit any additional loss for the raw material called in USD.
- The operators will be attentive to the preliminary global PMIS this week in search of a significant impulse.
West Texas Intermediate (WTI) crude oil prices (WTI) of the USA The raw material currently quotes around the region of $ 62.80, with a drop of almost 1.5% in the day, and is pressured by the decrease in fears due to interruptions in the supply.
Progress towards a nuclear agreement between the US and Iran increased the expectations that the return of Iranian oil to global markets would increase the supply, which, in turn, is considered to undermine the black liquid. In fact, USA and Iran agreed on Saturday to initiate discussions at the expert level to design a framework for a possible nuclear agreement. Expert meetings are scheduled to start in Oman on Wednesday, with a monitoring session planned for Saturday to evaluate progress.
In addition, the high fire of Russian President Vladimir Putin in Ukraine on Saturday aroused hopes that tensions could be broken down. This, in turn, would pave the way for a greater dialogue and reduce the risk premium for crude oil prices. However, the prevailing trend of the sale of the US dollar (USD), which tends to benefit raw materials called in USD, is braking operators to carry out aggressive bomberies around the raw material and helping to limit deeper losses.
Therefore, it will be prudent to expect a strong sales tracking before confirming that the recent moderate recovery from a minimum of more than four years achieved earlier this month has been exhausted. Operators could also choose to wait for the publication of the preliminary PMIS this week, which should provide a new vision of global economic health and offer a significant impulse to crude oil prices.
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.
