Select Language

WTI drops below $71.50 after the first US election results

blockHeadVisual
  1. HOME
  2. Get information
  3. World FX news
  4. WTI drops below $71.50 after the first US election results

World FX news

search
Breaking news

WTI drops below $71.50 after the first US election results

  • X
  • facebook
  • LINE
  • RSS
  • X
  • facebook
  • LINE
  • RSS
New update 2024.11.06 10:43
WTI drops below $71.50 after the first US election results

update 2024.11.06 10:43

  • WTI plunges to near $71.35 in Wednesday's Asian session. 
  • The stronger Greenback exerts some selling pressure on the USD-denominated Oil price. 
  • Investors await the outcome of the US presidential election as polls were closing in the US. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $71.35 on Wednesday. The WTI price edges lower as the US presidential election polls were closing in the United States.

According to CNN, Former US President Donald Trump will win the key race of Florida, while Kamala Harris picks up Massachusetts and Maryland. Harris and Trump each need at least 270 electoral votes to win the presidency.

Meanwhile, the US Dollar (USD) rises to 104.25 versus a basket of other currencies as Trump trades continue to rally as Trump odds improve. A stronger Greenback makes oil more expensive in other countries.

On Sunday, a larger group called OPEC+, consisting of OPEC members plus other oil-producing countries, agreed to extend their oil production cut to 2.2 million barrels per day (bpd) until the end of December 2024. The countries also reiterated their commitment to "achieve full conformity" with their production targets and to compensate for any overproduction by September 2025.

The American Petroleum Institute (API) weekly report showed crude stocks rose last week. Crude oil stockpiles in the United States for the week ending November 1, increased by 3.132 million barrels, compared to a decline of 0.573 million barrels in the previous week. The market consensus estimated that stocks would increase by 1.8 million barrels.

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.

 

Date

Created

 : 2024.11.06

Update

Last updated

 : 2024.11.06

Related articles

Show more

Writer

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?
No loading Yes loading

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Previous article

prev

Gold price bulls remain on the sidelines, around $2,740 after early US election results

Next article

USD/CAD surges to 1.3900 neighborhood as Trump trade boosts USD

prev

Most viewed

The recovery rally in the Gold market is likely to take a breather - Commerzbank

The Gold price has also recovered more than half of its losses since the end of October and is once again trading at $2,700 per troy ounce, Commerzbank's commodity analyst Barbara Lambrecht notes.
New
update2024.11.22 21:07

Swiss Gold exports reflect weak demand for Gold in Asia - Commerzbank

The Swiss Federal Customs Authority published data on Gold exports in October this week, Commerzbank's commodity analyst Carsten Fritsch notes.
New
update2024.11.22 20:59

Concerns about supply disruptions cause oil prices to rise - Commerzbank

Oil prices have risen noticeably over the past few days. Brent climbed to $74.8 per barrel in the morning, gaining almost 5% since the beginning of the week, Commerzbank's commodity analyst Carsten Fritsch notes.
New
update2024.11.22 20:56

USD/CNH: The major resistance at 7.2800 is likely out of reach - UOB Group

The US Dollar (USD) could to rise to 7.2630; the major resistance at 7.2800 is likely out of reach.
New
update2024.11.22 20:50

TRY: Unexpectedly dovish - Commerzbank

The Turkish central bank (CBT) held rates unchanged yesterday, as had been unanimously expected, but turned somewhat dovish in its language, contrary to our expectation.
New
update2024.11.22 20:46

JPY: The price of rice - Commerzbank

The statistics on Japanese inflation have a peculiarity. In most countries, the categories of food and energy are excluded when calculating core inflation.
New
update2024.11.22 20:46

USD/JPY: Decline is unlikely to threaten the major support at 153.30 - UOB Group

Bias for the US Dollar (USD) is tilted to the downside; any decline is unlikely to threaten the major support at 153.30.
New
update2024.11.22 20:42

RUB: US sanctions more systemic banks - Commerzbank

US OFAC announced additional sanctions on Russia yesterday, including on systemic banks which had hitherto been exempt because of the energy trade.
New
update2024.11.22 20:33

AUD/USD bounces back to near 0.6500 as USD gives up majority of gains

The AUD/USD pair recovers more than half of its intraday losses and rebounds to near the psychological figure of 0.6500 in Friday's European session.
New
update2024.11.22 20:29

NZD/USD: Likely to edge lower - UOB Group

The New Zealand Dollar (NZD) is under mild downward pressure; it is likely to edge lower, possibly testing 0.5835 before the risk of a rebound increases.
New
update2024.11.22 20:24

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

arw
  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Line

Line
Facebook

Facebook
X

Twitter
Cancel