WTI trim is part of the losses inspired by customs tariffs, finds some support near $ 69.00
- WTI attracts heavy sale as a reaction to the announcement of Trump’s mutual definitions.
- On Wednesday, the EIA Distinguished report on US crude stocks is put pressure on Wednesday.
- The widely weakest dollar gives some support to oil prices and more losses.
The crude oil prices in West Texas (WTI) extend in the decline slide the day before the neighborhood of $ 72.00, or the highest level since February 21, and attracted heavy sale during the Asian session on Thursday. However, the commodity finds some support near the $ 69.00 brand and is currently trading around a $ 69.65 region, still is less than 1 % for this day.
The mutual definitions worn by US President Donald Trump have raised concerns that the average trade war may abandon global economic growth and discourage fuel demand. This comes at the top of a declining report published by the US Energy Information Administration (EIA) on Wednesday, which showed us that raw stockpiles had increased by 6.2 million large barrels last week. It turns out that this is the main factors weighing crude oil prices.
Meanwhile, investors are now convinced that the American economic slowdown by customs tariff may force Federal Reserve (Fed) to resume the price cutting course soon. Moreover, the anti -risk flow leads to a sharp decrease in the return of US Treasury bonds and withdraws the US dollar (USD) near its lowest level in March. This, in turn, provides some support to the commodities that are placed in the United States of America and helps reduce crude oil prices.
Traders are now looking for the American economist DowCket – which is characterized by the issuance of the usual weekly work claims and the American ISM services. The data may affect the dynamics of the US dollar price and provide some motivation for black liquid. However, the focus will continue to be attached to commercial developments, which must continue to play a major role in influencing the morale close to the surrounding time with crude 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, 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.
