- The price of WTI gains land since Saudi Arabia could increase its prices of August crude oil for Asian buyers.
- Oil prices rise due to the news that Trump’s commercial officials are reducing their tariff agreement objectives.
- The next US employment data will probably offer new perspectives on the Fed interest rates in July.
The price of oil West Texas Intermediate (WTI) gains ground for the second consecutive session, quoting around $ 64,60 during the European hours on Tuesday. Crude prices gain ground since the world’s largest oil exporter, Saudi Arabia, is expected to raise their August oil prices for Asian buyers at the highest level in four months.
The Reuters survey cited five sources, saying that the official sales price (OSP) for August Arab Light Crude could increase between 50 and 80 cents, standing between $ 1,70 and $ 2 per barrel compared to the previous month. This increase could be attributed to the increase in oil prices during the conflict in the Middle East and a solid demand for fuel in summer.
In addition, oil prices receive support from an improved market feeling after the news that the main commercial officials of US President Donald Trump are reducing their objectives for broad reciprocal agreements with commercial partners. American officials were looking for agreements in phases with the most committed countries while pressing to reach an agreement before the deadline of July 9, when Trump had promised to reimpose their most severe tariffs, according to four people familiar with the discussions, cited by the Financial Times.
However, the potential for increasing oil prices could be restricted in the midst of the growing uncertainty about interest rates in the United States (USA), since it is the largest oil consumer. According to the White House, US President Donald Trump has formally raised complaints about the high interest rates to the president of the Federal Reserve (Fed), Jerome Powell, criticizing Powell for being “too late.” This renewed pressure, together with the impacts driven by tariffs on the underlying inflation in the short term, makes it difficult for the US Federal Reserve (FED) to advance with feat cuts.
The operators adopt caution before a broad bill of taxes and expenses that are currently being considered in the Senate, which could add 3.3 billion dollars to the national debt. US President Donald Trump published in Truth Social on Monday, “A great and beautiful bill advances very well!” The Trump administration has reduced costs, very substantially, for the US consumer. There has never been anything like this!
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.
