- The WTI remains stable after President Trump hinted possible new tariff exemptions for the automotive industry.
- China’s oil imports in March increased almost 5% year -on -year, partly driven by the increase in Iranian oil purchases.
- Opec+ has reduced its oil demand growth projections by 2025 and 2026.
The price of crude oil West Texas Intermediate (WTI) remains stable around $ 61,10 during Asian negotiation hours on Tuesday. A possible increase in crude oil prices is supported by the recent comments of the US president, Donald Trump, who suggested the possibility of new tariff exemptions.
On Monday, Trump indicated that he is considering a temporary relief of 25% tariffs in the automotive sector, with the aim of giving manufacturers time to reorient their supply chains. He also announced exemptions for key technological products under his new “reciprocal” tariffs, which helped boost the feeling of global risk.
In addition, oil prices gained impulse on Friday after the Trump administration announced tariff exclusions for smartphones, computers and other electronic devices, many of which are obtained from China.
Oil prices also found support in a strong rebound of Chinese crude imports. The data published on Monday showed that China’s crude oil imports in March increased almost 5% year -on -year, partly driven by the increase in Iranian oil purchases before the expected strictest USA sanctions.
However, the profits can be limited since Opec+, the organization of oil exporting countries and its allies, reviewed their oil demand growth forecasts by 2025 and 2026. The group now expects the demand to increase in 1.3 million barrels per day (BPD) in 2025 and 1.28 million BPD in 2026, figures lower than the previous estimates of 1.45 million and 1.43 million BPD, respectively, citing weak data from the first quarter and the impact of new US commercial measures.
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.
