- WTI is struggling to attract buyers in the concerns that the American-chinual trade war lowers the demand for fuel.
- OPEC + plans to increase production and progress received on the Iranian nuclear agreement also exerts pressure.
- The underlying bearish feeling surrounding the USD does not do much to impress the bulls or provide support.
West Texas (WTI) raw oil prices of West Texas (WTI) are fighting for an intra-day firm direction during the Asian session on Tuesday and oscillate in a narrow strip around the $ 61.75 zone, just above a bottom of the day before a week.
The American-Chinese trade war continues to dominate the feeling of the market in the midst of mixed signals concerning the state of negotiations. In addition, investors remain worried that the ongoing conflicts between the two largest economies in the world can trigger a global recession and a fuel demand, which is considered to be a front wind for crude oil prices.
Meanwhile, several OPEC + members would suggest an acceleration of exit increases for a second consecutive month in June. In addition, the progress collected in the talks of the nuclear agreement between the United States and Iran raise excess concerns. This turns out to be another factor that undermines crude oil prices and helps cap the increase.
The aforementioned negative factors, to a greater extent, eclipse the underlying American dollar (SD (lowered feeling and suggest that the slightest resistance way for black liquid is down. This, in turn, supports the prospects of a possible depression of $ 64.70.
In front, this week's investors will confront the publication of official Chinese PMIs, which, as well as the keys to American macro-data scheduled for the start of a new month, including non-agricultural macares (PNF), should give a certain momentum to crude oil prices. Nevertheless, the fundamental backdrop guarantees caution before placing bullish bets around the black liquid.
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.
