WTI trading with positive bias, remains less than 63.00 dollars as the bulls seem careful amid tariff tensions
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- WTI attracts some buyers on Tuesday, although it lacks any strong follow -up.
- Reducing the disruption of the width fears and fears of the trade war earns CAP for goods.
- The premium of geopolitical risks and a declining drug acts as the back wind of black liquid.
West Texas Medium (WTI) US crude oil prices are higher during the Asian session on Tuesday, although the rise inside the day lacks the bullish condemnation. The commodity remains less than two weeks that were touched last Friday, and is currently trading about $ 62.80 to $ 62.85, an increase of more than 0.30 % for this day.
Signs of progress in the talks of nuclear deals between the United States and Iran helped alleviate supply fears, which in turn were seen as a major factor behind the night segment of crude oil prices. In fact, the United States and Iran agreed on Saturday to start discussions at the expert level to design a possible nuclear deal. Experts ’meetings are scheduled to be held on Wednesday, with a plan for a follow -up session on Saturday to evaluate the progress made.
In addition to these fears that the comprehensive trade war would lead to global recession and fuel demand contributes to determining the bullish trend of black liquid. However, the geopolitical risk premium continues to play in the back of the prolonged Russia’s war. This, in addition to the basic downward feelings surrounding the US dollar (USD), acts as the back wind of goods from the dollar, including crude oil prices.
Meanwhile, Trump accused the Federal Reserve Chairman (Federal Reserve) Jerome Powell of not moving quickly enough to reduce interest rates. Moreover, the White House suggested that Trump and his team study if they could shoot Powell, raising doubts about the independence of the federal reserve. This comes in addition to the weak investors’ confidence in the American economy and fails to help the US dollar in registration of any meaningful recovery from the lowest level of three years on Monday.
The main mixed background mentioned above calls for some caution before putting aggressive directional stakes on crude oil prices. Traders may also choose to wait for the Plash PMis version on Wednesday for signals about global economic health, which in turn must provide some calm motivation for the commodity.
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.
