- Gasoline stocks in the US increased more than expected last week.
- Saudi Arabia is pressing OPEC+ countries to increase production again in August.
- WTI oil prices remain contained within a range of 60.00 to $ 63.00.
Crude prices have been limited again in the $ 63,00 area, before falling to levels just above $ 62.00 at the time of writing. An increase in the expected in US gasoline supplies, continuous global commercial uncertainty and the news that OPEC is considering another increase in supply have revived fears on an excess supply.
The recovery from the psychological level of 60.00 was affected on Wednesday after the US energy information administration reported that the stock Gasoline increased by 5.2 million barrels in the last week of May, compared to market expectations of an increase of 600,000 barrels.
OPEC+ countries plan another supply increase
Beyond that, Saudi Arabia He revealed that they are pressing the OPEC+ group to increase production even more in the coming months, trying to gain market share. The Saudis are chasing another increase of 411,000 BPD in August, after an identical increase in July.
This news, together with the continuous global commercial uncertainty, which is expected to despite the future demand for crude oil, has revived the fears of excess oil, and is maintaining the prices of crude oil in a defensive position on Thursday.
Technical analysis: lateral movement between $ 60.00 and $ 63.00
The technical image shows an irregular and volatile trade between the level of 60.00 and $ 63.30 at the top.
From a broader perspective, a possible double floor in the $ 55.00 area suggests the possibility of a deeper recovery, but prices should break the level of $ 64.65 to confirm that scenario.
In the lower part, the supports are at the intradic minimum of $ 61.55 and in the aforementioned area of ​​$ 60.00.
4 hours of oil wi
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.
