- Beti is trading in negative lands near $ 67.65 in the Asian session early on Wednesday.
- OPEC+ said it will continue to a plan to increase oil production as of April.
- Crude oil stocks in the United States decreased by 1.455 million barrels last week, according to API.
- Trump identification threats can undermine WTI price.
West Texas Interidia (WTI), US Crude Oil Standard, is trading about 67.65 dollars during the early Asian session on Wednesday. The price of Beti attracts some sellers amid geopolitical concerns, announcing the increase in OPEC+ and American definitions on Canada, Mexico and China.
On Monday, OPEC+, the organization of oil exporting and allies, including Russia, said it will continue to a plan to increase oil production as of April. This increase follows a series of OPEC+ discounts to stabilize the market.
“The change in the OPEC strategy gives priority to the price for the price. This policy is likely to be linked to Donald Trump’s wheel,” said Bugran Sheldroub, Senior Senate in SEB.
Crude oil stocks saw a greater decrease than expected last week. The weekly report of the American Petroleum Institute (API) showed crude oil stocks in the United States for the week ending 28 by 1.455 million barrels, compared to a decrease of 640,000 barrels in the previous week. The market consensus is estimated that the shares will decrease by 300,000 barrels.
US President Donald Trump confirmed that the customs tariff for Canada and Mexico will enter into force on Tuesday. The measures that Trump had previously reaffirmed the date of the new month of March after he was initially appointed for the month of April. In addition, the customs tariffs on Chinese goods imports were increased to 20 % of 10 %. Analysts expect that the customs tariff will curb economic activity and demand for energy, which weighs at the price of carbon dioxide.
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, where oil is often traded in US dollars, 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.
