WTI hovers near $ 70.00, and the negative side appears amid possible exports of oil fields in Kurdistan
- The price of Beti may decrease due to export expectations that have been resumed from the oil fields in Kurdistan.
- The Ministry of Oil in Iraq confirmed that the export plans of 185,000 barrels per day from the oil fields in Kurdistan through the Iraqi Torky pipeline.
- Russian and American teams are scheduled to meet this week to discuss ways to enhance bilateral relations.
The edges of oil prices in West Texas Medium (WTI) are up to about $ 70.30 a barrel during Asian trading hours on Monday. However, crude oil prices faced a decrease in the export expectations that were resumed from the oil fields in Kurdistan.
On Sunday, Reuters reported that an official in the Iraqi Oil Ministry confirmed Iraq’s plan to export 185,000 barrels per day (BPD) from the oil fields in Kurdistan through the Iraq pipeline of Torky. The ministry stated that all the necessary procedures have been completed to facilitate the resumption of exports through the pipeline.
Meanwhile, traders still focus on developments related to the ongoing conflict between Russia and Ukraine, which enters its fourth year on Monday. European Union leaders are expected to lead an extraordinary summit on March 6 to discuss additional support for Ukraine and European safety.
In addition, a great Russian diplomat indicated that Russian and American teams are planning to meet this week to explore ways to improve bilateral relations. This is followed by the initiative of US President Donald Trump to involve Russia in talks aimed at ending the war, though without the involvement of Ukraine or the European Union.
Investors also closely monitor the potential developments in American commercial policy. Tariffs related to President Trump can increase global trade tensions, which exerts additional pressure on crude oil prices. On Friday, Trump signed a memorandum of the US Foreign Investment Committee (CFIUS) to restrict Chinese investment in the strategic sectors.
Finally, the market participants will pay close attention to the issuance of the Personal Consumption Expenses Index (PCE) on Friday – the preferred scale of inflation in the FBI – which can provide more ideas about the future interest rate policy of the Central Bank.
WTI oil questions and answers
WTI Oil is a type of crude oil that is sold in international markets. West texas intermedition, which is one of three main types including Brent and raw Dubai. WTI is also referred to as “light” and “sweet” due to its low attractiveness and sulfur content, respectively. High quality oil is easily improved. It is obtained in the United States and is distributed through the Kushing Center, which is considered “the world lines lines in the world”. It is a standard for the oil market, and the price of WTI is frequently transferred in the media.
Like all assets, the supply and demand are the main engines of the oil price in WTI. As such, global growth can be a driver to increase demand and vice versa for a weak global growth. Political instability, wars and sanctions can disrupt supply and influence prices. OPEC decisions, a group of main oil -producing countries, is another major drive. The value of the US dollar affects the price of crude oil in WTI, given that the oil is often traded in the US dollar, and therefore the weakest US dollar can make oil more affordable and vice versa.
The weekly oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) affect the price of WTI oil. The changes in stocks reflect fluctuations and demand. If the data shows a decrease in stocks, it can indicate an increase in demand, which increases the price of oil. Top stocks can reflect the increase in supply, which leads to low prices. The API report is published every Tuesday and effect evaluation operations the next day. Its results are usually similar, as it falls within 1 % of each other 75 % of the time. Environmental impact evaluation data is more reliable, as it is a government agency.
OPEC (the Organization of Petroleum Exporting Countries) is a group of 12 oil -producing countries that collectively decide production classes for member countries in meetings twice annually. Their decisions often affect the prices of WTI oil. When Opec decides to reduce the shares, it can tighten the supply, which increases oil prices. When OPEC increases production, it has an opposite effect. OPEC+ refers to an expanded group of ten additional members without OPEC, most notably Russia.
