- The WTI is negotiated with caution around $ 66.00 while investors struggle to evaluate global perspectives after the deadline of tariffs on July 9.
- The US president confirmed that he will not extend the deadline of tariffs.
- Operators reduce bets in favor of Fed interest rate cuts at the monetary policy meeting at the end of this month.
The West Texas Intermediate (WTI), futures in Nymex, is negotiated with caution about $ 66.00 during the European negotiation session on Friday. The price of oil struggles to maintain its recent recovery from the weekly minimum of $ 64.00 while investors are cautious about the demand for energy after the imposition of reciprocal tariffs by the president of the United States (USA) Donald Trump, after the deadline of July 9.
The president of the United States said at the end of last week that he will not extend the deadline of tariffs for those countries that do not reach an agreement with Washington during the 90 -day pause. “I don’t think I need it,” Trump said in an interview with Fox Business.
Meanwhile, Donald Trump has also declared that he will send letters to those nations whose governments have not yet reached an agreement with Washington, delineating additional tariff rates, for Friday.
Until now, Washington has announced trade agreements with the United Kingdom (United Kingdom) and Vietnam, and a framework with China, and has expressed confidence that it will achieve an agreement with India before the deadline of tariffs.
The imposition of reciprocal tariffs by the US to its main commercial partners, such as the Eurozone, Japan, Canada and Mexico, will affect the stability of global trade. A scenario that will reduce the global oil demand.
Meanwhile, a decrease in operators’ bets in favor of interest rate cuts by the Federal Reserve (FED) at the Monetary Policy Meeting at the end of this month, after the publication of the optimistic Non -Agricultural Payroll Data (NFP) of the US for June, has also limited the uprising potential of the price of oil.
According to the CME Fedwatch tool, the probability that the FED cuts interest rates in July has decreased to 4.7% from 23.8% seen one day before the publication of US NFP data.
WTI oil – frequent questions
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.
