- The price of WTI is stabilized about $ 61,25 in the first Asian session on Tuesday.
- The OPEC+ moves the July production meeting one day to May 31.
- The extension of Trump’s commercial conversations with the EU supports the price of WTI.
The West Texas Intermediate (WTI), the referent of the US crude oil, is quoted around $ 61,25 during the Asian negotiation hours on Tuesday. The WTI price remains stable while operators expect clarity about the next OPEC+ movement on May 31.
The organization of oil exporting countries and its allies (OPEC+) will decide the July oil production levels for eight key members one day before, on May 31, earlier than planned previously. The sources previously told Reuters that this will imply another 411,000 barrels per day of production during a third consecutive month. Russian Prime Minister Alexander Novak said OPEC+ has not yet discussed production in another 411,000 barrels per day before his meeting.
Meanwhile, US president Donald Trump expressed his hope of progress in nuclear conversations with Iran after a meeting in Rome last week. Iranian Foreign Minister Abbas Araghchi said Friday that negotiations are too complicated to resolve in two or three meetings and that there was a potential for progress in nuclear negotiations after Oman made several proposals. However, Trump said American negotiators made “real progress” during “very good” nuclear conversations with Iran during the weekend. This, in turn, could limit the bullish potential for the price of the short -term WTI.
On the other hand, Trump announced an extension on the deadline of 50% of tariffs to the European Union (EU) until July 9 after a phone call with the president of the Ursula von der Leyen commission. These positive developments provide some support for black gold.
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.
