- The crude WTI roses after reaching $ 75.54 on Thursday, pressed by the decrease in geopolitical risk.
- The conversations in Geneva between Iran and EU diplomats point out a diplomatic impulse, cooling the fears in the Ormuz Strait.
- Trump delays the decision on the direct participation of the US, changing the market approach to the fundamentals of the offer.
The West Texas Intermediate (WTI) crude oil is quoted on Friday, sliding to around $ 73,80 per barrel after playing a maximum of $ 75.54 on Thursday.
The fall reflects the reduction of geopolitical risk after diplomatic conversations between Iran and European powers in Geneva, which helped undo the risk premium accumulated by tensions in the Middle East.
The WTI slides while diplomacy in Geneva calms fears in Ormuz, Trump delays the action
The EU diplomats of France, Germany, the United Kingdom and the EU met with Iranian Foreign Minister Abbas Araghchi, in the first official commitment since hostilities between Israel and Iran intensified. Although a high fire agreement was not reached, the meeting indicated a mutual preference for diplomacy on confrontation.
That helped calm investors about possible supplies in the supply, particularly around the Ormuz Strait, a key transit point for almost 20% of global oil shipments.
The conversations followed the comments of the Iranian legislator Behnam Saeedi, who said that Tehran could consider closing the Strait “if vital national interests were at risk”, but emphasized that it would be a last resort. Although the risks remain, the absence of new threats during conversations in Geneva has helped reduce volatility in oil markets.
At the same time, President Trump delayed a decision on the direct military participation of the US, changing the market approach to the fundamental offer and the broader feeling.
Petroleum inventory data paint a more adjusted supply panorama
In the data front, the US inventory figures published this week added bullish pressure. The American Petroleum Institute (API) reported a decrease of 10.13 million barrels for the week, while the Energy Information Administration (EIA) showed an even greater fall than 11.47 million barrels, with both figures widely exceeding expectations and indicating more adjusted supply conditions in the US.
Technical analysis: WTI consolidates after winning more than 22% in June
From a technical point of view, the WTI is maintained above the main simple mobile socks (SMA), with the SMA of 100 days and 200 days offering a solid support in 65.78 $ and 68.40 $, respectively.
The initial support is observed at the psychological level of $ 72.00, followed by the fibonacci setback of 61.8% of the fall from January to April at 69.98 $. The resistance is at the maximum of June 75.54, with a break above that exposing the maximum of January about $ 79.37.
The relative force index (RSI) remains just above 69, suggesting slightly lower overcompra conditions that could cause a short -term setback.
WTI crude oil daily graphics
In general, oil is consolidating after recent profits, since diplomatic progress and tight inventories in the US pull the market in opposite directions. The operators will remain attentive to new developments from Geneva and regional holders to obtain clues about the next oil movement.
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.
