- Petroleum prices are quoting about 11 months maximum, in the $ 74.00 area, with downward attempts by finding buyers.
- The fears that the conflict in the Middle East leads to an interruption of the supply maintain sustained crude oil prices.
- The United States has postponed its decision to attack Iran, which is preventing prices from climbing more.
Crude oil prices continue to quote near their highest levels since January, with WTI barrel quoting in the area of ​​$ 74.00 at the time of writing. The fears that the conflict in the Middle East can lead to a serious interruption of the supply are limiting the downward attempts.
The bassist reversal observed today earlier, after the United States postponed its decision to get involved in the war between Israel and Iran, has been contained in $ 72.45, and prices are replenishing again during the European morning, returning to levels close to the resistance area of ​​75.00 $, which has been limiting the bulls during the last week.
Seeing from a broader perspective, oil prices are on their way to closing the week with minor profits to complete a 20% recovery in the last three weeks. Investors are concerned that the conflict in the Middle East can cause the closure of the Ormuz Strait, the entrance door to a fifth of the world supply of crude oil, which would push oil prices at levels well above $ 100.
Meanwhile, Israel and Iran continue to exchange fire and threats as the war enters its eighth day without signs of de -escalated in sight. Israel’s defense minister once again threatened to kill the Supreme Leader of Iran, Ali Khamenei, and Iran has promised to inflict “irreparable damage” if the United States gets involved in the war.
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.
