- In the wake of the Ukrainian drone on a pipeline responsible for the transfer of about 1 % of the global crude supplies.
- The Ukrainian attack led to a decrease in crude shipments from Kazakhstan, affecting Western companies such as Chevron and Exxonmobil.
- Traders closely see developments in peace talks in Russia-Ukraine in the Kingdom of Saudi Arabia.
The price of crude oil in West Texas (WTI) continues its bullish momentum for the second consecutive day, trading about 71.70 dollars a barrel during the European hours on Tuesday. The gains follow an attack by Ukrainian drones on a major pumping station for a pipeline in southern Russia, hindering raw oil flows from Kazakhstan.
According to Reuters, a senior Russian official confirmed on Tuesday that Ukrainian drones targeted a pipeline responsible for transporting nearly 1 % of the global crude offer. He warned that the attack could affect global markets and affect American companies. The disorder has led to a decrease in crude shipments from Kazakhstan, which affects western companies such as Chevron and Exxonmobil. The Caspian pipeline (CPC) reported on Monday that the Krupotkinskaya station, a major oil transport facility in the southern Krasnodar region in Russia, had drones.
Traders also see developments in peace talks in Russia-Ukraine on Tuesday. American and Russian officials in Saudi Arabia are gathering to discuss the potential decisions of the three -year conflict in Ukraine and the possibility of restoring the United States and Russian relations. However, Ukraine, which does not participate in the talks, made it clear that no agreement can be reached without its participation. “As a sovereign country, we cannot simply accept any agreements that have been made without us,” said President Voludmir Zelinski last week.
Meanwhile, reports indicate that Opec+ producers are not thinking about postponing the planned series of increasing the monthly oil supplies that will start in April. However, concerns about a possible global trade war – which were received by American definitions Donald Trump – were limited to more gains in oil prices.
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, since oil is often traded in US dollars, and therefore the weakest US dollar can make oil more at reasonable 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.
