- Beti price edges decrease to $ 60.30 in the Asian session on Monday.
- Economic uncertainty and stagnation fears lead to a decrease in the price of WTI.
- OPEC+ decided to raise crude oil production by 411,000 barrels per day in May.
West Texas Interidia (WTI), American crude oil standard, is trading around $ 60.30 during the early Asian session on Monday. Central treatment price has decreased to its lowest point since April 2021 amid fears that US President Donald Trump’s international tariff will push the United States (the United States) to recession.
Traders are worried about an escalating trade war from Trump’s global tariff, which will slow economic growth and raises fears of slowing economic activity in the United States and globally. This, in turn, is still undermining the price of WTI. The customs duties, which are scheduled to apply this week, “may push the United States and possibly the global economy to recession this year,” according to JPMorgan analysts.
A sudden increase in production by the organization of oil exporters and allies (Opec+) contributes to the negative side of WTI. OPEC+ announced plans to increase production, with the aim of returning 411,000 barrels per day (BPD) to the market in May, up from 135,000 barrels per day.
Oil dealers will monitor inflation data at the US Consumer Prices Index (CPI) closely for the month of March, which is scheduled later on Thursday. Any signs of cooler inflation in the United States can affect Greenback and provide some support for the price of commodity commodities denominated in US dollars in the short term.
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.
adxpro.online