- Beti is gaining momentum to approximately $ 69.60 in the early Asian session on Thursday.
- Trump said that any country buying Venezuelan oil will face a 25 % tariff.
- Crude oil stocks in the United States decreased by 3.341 million barrels last week, according to an environmental impact assessment.
West Texas Interidia (WTI), the American crude oil standard, is trading about $ 69.60 during the early Asian session on Thursday. The price of Beti extends to the highest level in four weeks amid increasing concerns about the most strict global supply after the American threat of definitions of countries that buy Venezuelan production.
The price of WTI was supported because US President Donald Trump slapped a 25 % secondary tariff for countries that buy oil or Venezuelan gas, as of April 2. According to the Ministry of Commerce trade data, the United States bought $ 5.6 billion of oil and gas from Venezuela in 2024, making it one of the major foreign suppliers of oil to the last year of the United States.
Reduced crude oil stocks contribute to increasing crude oil prices. The weekly report of the US Energy Information Administration (EIA) showed crude oil stocks in the United States for the week ending March 21 by 3.341 million barrels, compared to an increase of 1.745 million barrels in the previous week. The market consensus is estimated that the shares will decrease by 1.6 million barrels.
On the other hand, the ceasefire and energy ceasefire between Russia and Ukraine compensates for concerns about the most stressful global supply, which may respect the ups of the WTI price. The United States has reached deals with Ukraine and Russia to stop attacks at sea and against energy targets, as Washington is also trying to reduce some sanctions against Moscow.
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.
