- WTI is priced close to $ 69.60 in the early Asian season of Thursday.
- Trump said that any country buying Venezuela oil will have to face 25% tariffs.
- According to the EIA, crude oil stockpiles in the US fell to 3.341 million barrels last week.
West Texas Intermediate (WTI), US crude oil benchmark, is trading around $ 69.60 during the initial Asian season on Thursday. The WTI value expands the rally for a high level of about four weeks amid growing concerns about strict global supply after tariffs on tariffs buying Venezuela production.
The price of WTI has been supported as US President Donald Trump slapped 25% secondary tariffs on nations purchasing Venezuela oil or gas, effective from 2 April. According to trade data from the Department of Commerce, the United States bought $ 5.6 billion oil and gas from Venezuela in 2024, making it one of the top foreign suppliers of the US last year.
The decline in crude oil inventions contribute to an increase in crude oil prices. The US Energy Information Administration (EIA) Weekly Report had a decline of 3.341 million barrels in the United States for the week ended on March 21, compared to a 1.745 million barrel growth in the last week. The market’s consensus estimated that the shares would lack 1.6 million barrels.
On the other hand, a marine and energy ceasefire between Russia and Ukraine offset concerns about tight global supply, which may be reversed to the WTI price. The US reached deals with Ukraine and Russia to prevent attacks against sea attacks and energy goals, Washington also tried to reduce some sanctions against Moscow.
WTI Oil Question
WTI oil is crude oil sold in international markets. The WTI West is for Texas Intermediate, one of the three major types including Brent and Dubai Crude. WTI is also called “light” and “sweet” due to relatively low gravity and sulfur material respectively. It is considered a high quality oil that is easily refined. It is sour in the United States and is distributed through the Kushing Hub, which is considered the “pipeline intersection of the world”. This oil is a benchmark for the market and the WTI price is often quoted in media.
Like all assets, supply and demand are the major drivers of WTI oil price. For example, global development may be the driver of increased demand and vice versa for weak global development. Political instability, war and restrictions can disrupt the prices of supply and impact. OPEC’s decision, a group of major oil producing countries, is another major driver of value. The value of the US dollar affects the price of WTI crude oil, as the oil mainly trading in the US dollars, thus making a weak US dollar more cheap and vice versa.
Weekly oil inventory reports published by the American Petroleum Institute (API) and Energy Information Agency (EIA) affect the price of WTI oil. Changes in inventions reflect the supply and demand of ups and downs. If the data shows a decline in inventions, it can indicate increased demand, increases the price of oil. High inventions can reflect an increased supply, reducing prices. The API report is published every Tuesday and the EIA after The Day. Their results are usually the same, falling within 75% of the time within 1% of each other. EIA data is considered more reliable, as it is a government agency.
OPEC (organization of petroleum exporting countries) is a group of 12 oil producing countries that collectively set production quota for member countries in annual meetings twice. Their decisions often affect WTI oil prices. When OPEC decides low quota, it can tighten the supply, increase oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an extended group consisting of ten additional non-OPEC members, the most notable of which is Russia.
