The WTI fights near the area of ​​$ 61,75, below its minimum of more than a week amid concerns for demand

  • The WTI struggles to attract buyers in the midst of concerns that the commercial war between the US and China will affect the demand for fuel.
  • Opec+ plans to increase production and progress received in the nuclear agreement with Iran also exerts pressure.
  • The underlying bearish feeling around the USD does not impress the bulls or support.

The prices of crude oil West Texas Intermediate (WTI) struggle to find a firm intra -ease address during the Asian session on Tuesday and oscillates in a narrow range around the area of ​​61.75 $, just above a minimum of a week and a half reached the day before.

The commercial war between the US and China continues to dominate the feeling of the market amid mixed signals about the state of negotiations. In addition, investors are still concerned that the ongoing conflict between the two largest economies in the world could trigger a global recession and affect fuel demand, which is considered a wind against crude oil prices.

Meanwhile, several Opec+ members reported that they will suggest an acceleration of production increases per second consecutive month in June. In addition, the progress received in the conversations on the nuclear agreement between the US and Iran generates concerns about the excess of supply. This turns out to be another factor that undermines crude oil prices and helps limit the rise.

The negative factors mentioned above, to a large extent, eclipsan the underlying bearish feeling of the US dollar (USD) and suggest that the road of lower resistance for the black liquid is down. This, in turn, supports the prospects of an eventual break below a one -week range and an extension of the recent setback from the region of 64.70 $.

Looking ahead, investors this week will face the publication of the official PMIS of China, which, together with the key macroeconomic data of the United States for the beginning of a new month, including non -agricultural payroll (NFP), they should provide some impulse to crude oil prices. However, the fundamental background justifies a certain caution before opening bullish positions around the black liquid.

WTI FAQS oil


WTI oil is a type of crude oil that is sold in international markets. WTI are the acronym of West Texas Intermediate, one of the three main types that include the Brent and Dubai’s crude. The WTI is also known as “light” and “sweet” by its relatively low gravity and sulfur content, respectively. It is considered high quality oil that is easily refined. It is obtained in the United States and is distributed through the Cushing Center, considered “the crossing of the world.” It is a reference for the oil market and the price of WTI is frequently traded in the media.


Like all assets, supply and demand are the main factors that determine the price of WTI oil. As such, global growth can be a driver of the increase in demand and vice versa in the case of weak global growth. Political instability, wars and sanctions can alter the offer and have an impact on prices. OPEC decisions, a group of large oil -producing countries, is another key price factor. The value of the US dollar influences the price of WTI crude oil, since oil is mainly traded in US dollars, so a weaker dollar can make oil more affordable and vice versa.


Weekly reports on oil inventories published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) influence the price of WTI oil. Changes in inventories reflect the fluctuation of supply and demand. If the data show a decrease in inventories, it can indicate an increase in demand, which would raise the price of oil. An increase in inventories may reflect an increase in supply, which makes prices lower. The API report is published every Tuesday and that of the EIA the next day. Their results are usually similar, with a 1% difference between them 75% of the time. EIA data is considered more reliable, since it is a government agency.


The OPEC (Organization of Petroleum Exporting Countries) is a group of 13 nations oil producing that collectively decide the production quotas of member countries in biannual meetings. Their decisions usually influence WTI oil prices. When OPEC decides to reduce fees, it can restrict the supply and raise oil prices. When OPEC increases production, the opposite effect occurs. The OPEC+ is an expanded group that includes another ten non -members of the OPEC, among which Russia stands out.

Source: Fx Street

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