- WTI is steadfast with caution over $ 70.00, as investors stare at the Trump Putin meeting.
- The impact of Russia’s truce will be negative for the oil price.
- OPEC is likely to delay the planned monthly supply.
West Texas Interidia (WTI), future on NYMEX, is trading with caution over the lowest level in seven weeks at $ 70.15 in the European session on Monday. The price of oil is trading with caution, as investors seek more development in peace talks in Russia-Ukraine.
Last week, US (The United States) President Donald Trump confirmed that both the leaders of Russia and Ukraine have agreed to peace negotiations.
Donald Trump said he had a “very lengthy and fruitful” conversation with Russian leader Vladimir Putin, and agreed to start peace negotiations with Ukraine. He also ordered his team to start peace talks.
During the weekend, Trump also said he was expected to discuss the end of the three -year war in Ukraine in the coming days.
Philip Nova analysts expect, “If negotiations lead to a decision, more Russian barrels will enter global supplies, which may greatly affect Oil prices Negative. “
Meanwhile, reports that OPEC planned to delay the planned monthly increases, which were expected to start in April, have provided a temporary reduction in the oil price, Bloomberg said.
The decision contradicts the desire of President Donald Trump in the Kingdom of Saudi Arabia to increase oil production by two million barrels last month.
Questions and answers in crude oil Brent
Brent crude oil is a type of crude oil located in the North Sea, which is used as a standard for international oil prices. It is considered “light” and “sweet” due to its high attractiveness and low sulfur content, which makes it easy to improve in gasoline and other high -value products. Brent Ramt Oil is a reference price for about two -thirds of the world’s oil supplies. Its popularity depends on its availability and stability: the North Sea region has a firm infrastructure for the production and transportation of oil, which ensures a reliable and consistent supply.
Like all assets supply and demand are the main engines of the Brent crude oil price. 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, because oil is often traded in US dollars, and therefore the weakest US dollar can make oil more at reasonable 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 crude 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 production countries that collectively decide production classes for member countries in meetings twice. Their decisions often affect the prices of Brent crude 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.
2025-02-17 11:52:42
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