- The price of WTI decreases as progress in Iran's American nuclear nuclear talks increase the possibility that Iranian gross returning to the market.
- OPEC + potential increase production for a second consecutive month is to add additional pressure on oil prices.
- The feeling of oil can also be increased by signs of slowing China's demand.
The West Texas Intermediate Oil Prix (WTI) is negotiated down $ 62.70 per barrel during European hours on Monday. Raw oil prices continue to decrease as progress in Iran's American nuclear nuclear talks increase the reintegration of Iranian crude. In addition, the expectations that the organization of the exporting oil countries and its allies, the OPEC +, could increase production for a second consecutive month exerted additional pressure on oil prices.
However, WTI prices could see a certain recovery, motivated by the hope of mitigating American-Chinese trade tensions. On Friday, China announced an exemption for certain American imports of its high prices of 125%, aroused optimism that the prolonged commercial dispute between the two largest economies could approach a resolution.
In addition, Brooke Rollins, American agriculture secretary, said on Sunday that the Trump administration was in daily discussion with China on prices. Rollins also noted that negotiations with other business partners are growing, several “very close” commercial transactions of the finalization. On the other hand, the American secretary of the Treasury, Scott Bessent, did not support Trump's claim on current talks in China, while Beijing denied that discussions took place.
Despite these developments, the feeling could be attenuated by signs of slowing China's demand. The reports suggest that some Chinese manufacturers suspended production and seek alternative markets due to American prices, which leads to less orders and an impact on employment. Although they are not yet widespread, these disturbances could ultimately harm oil demand, because China remains the largest importer of oil.
WTI oil faq
WTI oil is a type of crude oil sold on international markets. WTI means West Texas Intermediate, one of the three main types, including Brent and Dubai Brude. WTI is also called “light” and “sweet” because of its gravity and relatively low sulfur respectively. It is considered a high quality oil which is easily refined. It comes in the United States and distributed via Cushing Hub, which is considered “the crossroads of the world pipeline”. This is a reference for the oil market and the WTI price is frequently quoted in the media.
Like all assets, supply and demand are the main drivers of the WTI oil price. As such, global growth can be an engine of increased demand and vice versa for low global growth. Political instability, wars and sanctions can disrupt the offer and have an impact on prices. OPEC's decisions, a group of major oil producing countries, is another key engine in Price. The value of the US dollar influences the price of crude oil WTI because oil is mainly exchanged in US dollars, so a lower US dollar can make oil more affordable and vice versa.
Weekly petroleum stocks published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) have an impact on WTI oil prices. Changes in stocks reflect fluctuating supply and demand. If the data shows a drop in stocks, this may indicate increased demand, increasing the price of oil. Higher stocks can reflect the increased offer, lowering prices. The API report is published every Tuesday and EIA the next day. Their results are generally similar, falling to 1% from each other 75% of the time. EIA data is considered more reliable, as it is a government agency.
OPEC (Organization of Oil Exporting countries) is a group of 12 oil producing countries which collectively decide production quotas for member countries during meetings twice a year. Their decisions often have an impact on WTI oil prices. When OPEC decides to reduce quotas, it can tighten the offer, increasing oil prices. When the OPEC increases production, it has the opposite effect. OPEC + refers to an enlarged group which includes ten additional non -OPEC members, the most notable is Russia.
