- WTI is still declining due to fears that the comprehensive trade war will defend the demand for fuel.
- Excessive compensation interests, amid OPEC+ decision to enhance production, also on black liquid.
- High federal reserve -reducing bets keep USD depression and provide some support to the commodity.
Crude oil prices are trading in West Texas (WTI) with a negative bias for the fourth consecutive day on Friday and slides below the mark of $ 66.00/barrel during the Asian session. The commodity is near its lowest level in more than three weeks and remains on the right track to record heavy weekly losses.
US President Donald Trump announced the mutual definitions that he announced late on Wednesday about concerns about an average trade war, which may slow economic growth and fuel demand. In addition, eight OPEC+ members developed their plan unexpectedly to gradually get rid of production cuts and raise the common crude oil output by 411,000 barrels per day in May. This, in turn, begins to rely on attention and is found to be a major factor that weighs on the black liquid.
Meanwhile, the US dollar (USD) has suffered from the lowest level since October touched on Thursday amid bets that the American economic slowdown by the customs tariff may force the Federal Reserve (Fed) to resume the price cutting course soon. This is seen by providing some support to the commodities provided by the US dollar and obstructing merchants from putting aggressive pipes on crude oil prices. Investors are now looking for recruitment details in the United States to obtain a new impetus.
The salary salary report in the United States, known popularly (NFP), is expected to appear that the American economy added 135,000 new jobs in March, although the unemployment rate is expected to stabilize at 4.1 %. The decisive data will play a major role in influencing the dynamics of the dollar price at a later time during the North American session and produces short -term trading opportunities on crude oil prices. However, the market concentration will remain attached to the addresses associated with trade.
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.
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