- The price of WTI falls as concerns about the weakness of oil demand in the middle of the minors likely to fed fees.
- The US non -agricultural payroll (NFP) showed 147,000 new added jobs, while the unemployment rate descended to 4.1% in June.
- The Treasury Department and the US State Department announced sanctions aimed at a network involved in Iranian oil smuggling.
The price of oil West Texas Intermediate (WTI) extends its losses per second consecutive session, quoting around $ 66.10 per barrel during Friday’s Asian hours. Crude oil prices depreciate due to the possible decrease in oil demand, driven by the solid labor market, which reinforces the case for the US Federal Reserve (Fed). Keep interest rates without changes. It is important to note that the highest indebtedness costs economic activities in the United States (USA), the world’s largest oil consumer, and weakens crude oil prices.
The US Non -Agricultural Payroll (NFP) showed that the US workforce grew by 147,000 jobs, exceeding 110,000 anticipated in June. In addition, the unemployment rate decreased to 4.1% from 4.2%. Meanwhile, the weekly applications for unemployment subsidy fell to 233,000, from 237,000.
In addition, investors are also waiting for clarity on the plans of the US president, Donald Trump, for tariffs in several countries. Trump said Thursday night that “it will begin to send letters on commercial tariffs starting Friday.” He informed journalists that he would send letters to 10 countries at the same time, establishing tariff rates from 20% to 30%, according to Reuters.
Additionally, the Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEP+, are prepared to announce an increase of 411,000 barrels per day in production for August at their meeting this weekend. The total increase in production in 2025 will raise the profit to 1.78 million barrels per day, which is equivalent to more than 1.5% of the global oil demand.
The negative side of oil prices could be contained, since on Thursday, the Treasury Department and the US Department of State announced separate sanctions against a network that smuggled Iranian oil disguised as Iraqi oil and a financial institution controlled by Hezbollah, according to Reuters.
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.
