- The WTI price is appreciated due to a fall in crude oil stocks in the US greater than expected, which indicates a firm demand.
- The US EIA reported a drop of 5.8 million barrels in crude oil inventories last week.
- Petroleum prices can face challenges as the high fire between Israel and I will relieve concerns about the supply.
The price of oil West Texas Intermediate (WTI) stops its three -day loss streak, quoting around $ 64,90 per barrel during the Asian hours on Thursday. Crude oil prices rise slightly due to a fall in crude oil in the United States (USA) greater than expected, which indicates a firm demand.
The variation of the Energy Information Information Administration (EIA) management of the US In addition, gasoline stocks fell surprisingly at 2.1 million barrels, challenging the forecasts of an increase of 381,000 barrels, and reached their highest level since December 2021.
However, the downward pressure on oil prices can continue in the midst of the decrease in concerns about the supply, driven by the high fire between Israel and Iran. The operators will probably focus on developments around conversations between the US and Iran and conflicts in the Middle East.
The president of the United States, Donald Trump, said that the United States (USA) and they would celebrate a meeting next week, but when asked about the need for a diplomatic solution to Iran’s nuclear program, he cited the damage that US bombings had caused to key sites, according to Bloomberg.
This follows after President Trump’s renewed commitment to the maximum pressure campaign on Iran, including oil exports restrictions. However, Trump hinted at a possible relief in the application of sanctions to support Iran’s reconstruction and indicated that China could continue to import Iranian crude.
Last week, Igor Sechin, head of the largest oil producer in Russia, Rosneft, said OPEC+, which includes OPEC members and allies such as Russia, could advance their planned production increases in approximately one year compared to the original schedule.
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.
