- The WTI lacks an intra -firm intra -direction, although it is still on its way to registering weekly profits.
- Commercial conversations between the US and China generate growth hopes in fuel demand and support oil prices.
- A bassist USD also acts as a tail wind for the raw material before the US NFP report.
West Texas Intermediate (WTI) crude oil prices (WTI) oscillate in a narrow range, around $ 62.00 during Friday’s Asian session, and are still on their way to register profits for the first time in three weeks.
The hopes of resumption of commercial conversations between the US and China raise the expectations of a strong fuel demand in the two largest economies in the world, which, in turn, acts as a tail wind for the black liquid. In fact, the president of the United States, Donald Trump, and the Chinese president, Xi Jinping, spoke on Thursday and agreed that officials from both parties will meet soon for more conversations to resolve the current commercial war.
In addition, a blow to the Canadian offer due to forest fires turns out to be another factor that supports crude oil prices in the middle of the persistent geopolitical risks derived from the prolonged war between Russia and Ukraine and conflicts in the Middle East. Adding to this, the underlying bearish feeling around the US dollar (USD) is considered to support the raw material called in USD.
However, the operators seem reluctant to open aggressive addresses around crude oil prices and choose to wait for the publication of monthly US employment data that are very followed. The US Non -Agricultural Payroll (NFP) report, popularly known, will play a key role in the influence of market expectations on the future road cuts of the Federal Reserve (Fed) and boosting the demand of the USD.
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.
