- The WTI price weakens in the midst of survey fears after possible high -fire conversations between Russia and Ukraine.
- President Trump declared that Ukraine and Russia are preparing to begin immediate negotiations of Alto El Fuego, potentially without the participation of the United States.
- The PBOC reduced both the preferential rate of loans to one year and the five -year -old at 10 basic points, up to 3.0% and 3.5%, respectively.
The price of oil West Texas Intermediate (WTI) is quoted around $ 62.00 per barrel during the European session on Tuesday, going back after two consecutive days of profits. The recoil occurs while the markets evaluate the possible effects of a cessation of hostilities between Russia and Ukraine in the global oil supply.
According to Reuters, US president, Donald Trump, announced Monday that after a telephone call with Russian President Vladimir Putin, Ukraine and Russia are ready to begin immediate conversations of high fire, potentially without the participation of the US Overabased.
Adding more pressure to oil prices, Moody’s reduced US sovereign credit rating, clouding economic perspectives for the world’s largest oil consumer. In addition, industrial production and retail sales in China, currently the main importer of oil, were weaker than expected, which has reinforced the bearish feeling.
At its Mayo Policy meeting, the Popular Bank of China (PBOC) reduced both the preferential interest rate to one year and the five -year -old at 10 basic points, up to 3.0% and 3.5%, respectively. The widely anticipated cuts, which brought both rates to historical minimums, are part of the largest monetary flexibility strategy of Beijing aimed at revitalizing a stagnant economy in the midst of growing commercial tensions. These measures can offer some support to the demand for long -term oil.
Meanwhile, geopolitical tensions remain high, since Iran’s vice chancellor, Majid Takhtravanchi, warned that negotiations with the USA “will not lead anywhere” if Washington insists on a total detention of the enrichment of Uranium of Teherán.
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.
