- The losses of the West Texas Intermediary (WTI) are around 1.20% after not being able to prove the $ 68.00.
- Monthly profits for WTI are about 10% as tensions in the Middle East emerge on Thursday.
- The United States and Iran are preparing for another round of nuclear negotiations, which could provide an additional catalyst for the WTI.
The West Texas Intermediary (WTI) is quoting downward in the American session on Thursday, erasing a part of the earnings from the previous session.
After an increase of 5.22% on Wednesday, prices broke above the single mobile average (SMA) of 100 days, reaching a maximum of $ 67.82.
However, despite the optimistic impulse received by the decalsed in commercial tensions between the US and China and the decrease in reserves, the feeling of risk remains fragile. The tariff threats of US President Donald Trump have resurfaced, tensions in the Middle East are climbing and commercial tensions persist.
In addition, the recent recovery in oil prices has resulted in an approximate price gain of 10% this month. This could justify a prices correction, at least in the short term.
From a fundamental point of view, tariffs and commercial tensions often result in decreasing economic growth, which reduces oil demand. However, tensions in the Middle East, particularly in Iran, could lead to higher prices in case of supply interruptions.
NBC news reported, citing five people familiar with the matter, which Israel is considering taking military actions against Iran in the next few days. At the same time, Trump confirmed Wednesday that American staff is being transferred from parts of the Middle East due to the growing tensions between Israel and Iran. This occurs before the sixth round of nuclear negotiations between the US and Iran, scheduled for this weekend in Oman.
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.
