West Texas Intermediate (WTI) Oil price moves little after registering slight gains in the previous session, trading around $58.20 per barrel during the Asian hours on Thursday. Crude Oil prices may gain ground as United States (US) President Donald Trump announced that Indian Prime Minister Narendra Modi had pledged his country would stop buying Russian Oil, per Reuters.
Trump said during a White House event, “So I was not happy that India was buying Oil, and Modi assured me today that they will not be buying Oil from Russia.” Trump recently criticized India’s Russian Oil imports, imposing tariffs on Indian exports to the US to deter its crude purchases from Moscow.
Trump also added that the US would next seek to pressure China to curb Russian Oil imports, aiming to cut Moscow’s energy revenues and push it toward a peace deal in Ukraine. Meanwhile, US Treasury Secretary Scott Bessent said he informed Japan’s Finance Minister Katsunobu Kato in Washington that the Trump administration expects Japan to halt Russian energy imports.
According to another Reuters report, the United Kingdom (UK) imposed new sanctions on Russia’s top Oil firms, Lukoil and Rosneft, along with 44 shadow fleet tankers, aiming to tighten energy restrictions and curb Kremlin revenues. Both companies face asset freezes, director bans, transport limits, and restrictions on British trust services under the UK’s Russia sanctions laws.
UK Finance Minister Rachel Reeves stated during a US trip that “We are introducing targeted sanctions against the two biggest oil companies in Russia, Lukoil and Rosneft.” “At the same time, we are ramping up pressure on companies in third countries, including India and China, that continue to facilitate getting Russian oil onto global markets.”
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker 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) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
Read the full article here
