- The WTI rises while China presents new measures to stimulate consumption.
- The hutis assume responsibility for the attack on the aircraft carriers Harry S. Truman.
- Oil prices gain support in the midst of decreasing optimism for a rapid resolution of the war in Ukraine.
The price of oil West Texas Intermediate (WTI) extends its winning streak per second consecutive session, quoting around $ 67,40 per barrel during the Asian market hours on Monday. The profits occur as crude oil prices are strengthened after the announcement of new measures in China, the world’s largest oil importer, to boost consumption.
On Sunday, Beijing announced a special initiative aimed at reliving internal consumption. The plan includes salary increases, incentives to increase household spending and efforts to stabilize shares and real estate markets.
Oil prices also received support from the climbing of geopolitical tensions in the Middle East, which have generated concerns about supply interruptions. On Sunday, the hutis demanded the responsibility of an attack that involved 18 ballistic and cruise missiles, as well as drones, aimed at the USS Harry S. Truman aircraft and its escort warships in the north of the Red Sea.
Meanwhile, the US Secretary of Defense, Lloyd Austin, reaffirmed that the United States (USA) will continue to attack Yemen’s hutis until their attacks on navigation cease. The group backed by Iran, in turn, has promised to scale their retaliation in response to recent US attacks.
In addition, crude oil prices found support in the vanished hopes of a rapid resolution of the war in Ukraine, which could have led to an increase in Russian energy supplies to Western markets. However, discussions are expected this week on a possible ceasefire, since the US president, Donald Trump, and the Russian president, Vladimir Putin, participate in conversations, are expected to participate.
Steve Witkoff, sent from Trump, declared on Sunday that he anticipates that the two leaders will speak, adding that Putin “accepts the philosophy” of the proposal of cessation to Trump’s fire, according to *The Guardian *. Last week, the US and Ukraine proposed a ceasefire of 30 days to Russia, with Putin allegedly showing support to the initiative.
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.
