Created
: 2025.02.10
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
WTI recovers further from YTD low and climbs to $71.25 area; lacks bullish conviction
World FX news
Breaking news
WTI recovers further from YTD low and climbs to $71.25 area; lacks bullish conviction
New
2025.02.10 12:09
2025.02.10 12:09
2025.02.10 12:09
- WTI scales higher for the second straight day amid worries that Iran's oil supply could be disrupted.
- Concerns that Trump's trade tariffs will hamper global growth and temper fuel demand cap gains.
- A modest USD strength further contributes to keeping a lid on the upside for Crude Oil prices.
West Texas Intermediate (WTI) US Crude Oil prices gain some positive traction for the second successive day on Monday and move away from the lowest level since December 30, around the $70.30-$70.25 area touched last week. The commodity currently trades around the $71.25 region, up over 0.60% for the day, though it lacks bullish conviction amid mixed fundamental cues.
US President Donald Trump's administration issued a fresh round of sanctions targeting several individuals and vessels involved in the sale and transportation of Iranian crude to China. Adding to this, Trump said that he would return to a maximum-pressure approach to Iran and seek to reduce Iranian oil exports to zero. This, in turn, fuels concern that Iran's oil supply could be disrupted and acts as a tailwind for the black liquid.
That said, worries that Trump's trade tariffs could dampen global economic growth and dent energy demand keep a lid on any gains for Crude Oil prices. In fact, Trump threatened on Sunday he would announce additional 25% tariffs on all steel and aluminum imports into the US, and will also announce reciprocal duties over what he sees as unfair trading practices. This comes on top of the escalating US-China trade war and warrants caution for bulls.
Apart from this, a modest US Dollar (USD) strength, bolstered by expectations that Trump's protectionist policies would boost inflation and limit the scope for the Federal Reserve (Fed) to ease further, might contribute to capping Crude Oil prices. Hence, it will be prudent to wait for strong follow-through buying before confirming that the recent downfall witnessed over the past three weeks or so has run its course and placing bullish bets around the commodity.
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.
Last updated
: 2025.02.10
Related articles
EU's gas storage targets are under pressure - Rabobank
2025.02.11 20:35Crude oil price today: WTI price bullish, according to FXStreet data
2025.02.11 20:09Oil: Energy complex is being pushed higher - ING
2025.02.11 19:03Gas trades at two-year high - ING
2025.02.11 18:51WTI maintains position above $72.00 due to rising Oil supply concerns
2025.02.11 13:54WTI drifts higher above $72.00 despite trade war concerns
2025.02.11 09:15
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?
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.
Most viewed
GBP/USD climbs above 1.2400 as US Dollar weakens on tariff woes
The British Pound resumed its uptrend early on Tuesday morning following the latest US President Trump tariff round, which included base metals like aluminum and steel.
New
2025.02.11 23:47Silver Price Forecast: XAG/USD finds cushion after plummeting to $31.30, Fed Powell's speech eyed
Silver price (XAG/USD) finds a temporary cushion near $31.30 in Tuesday's North American session after declining sharply earlier in the day.
New
2025.02.11 23:36GBP gains through 1.2380 may drive more strength towards 1.2425/50 - Scotiabank
The Pound Sterling (GBP) is little changed on the session, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.02.11 23:25NZD/USD flattens around 0.5650 as investors await Fed Powell's testimony
The NZD/USD pair trades flat around 0.5650 in North American session on Tuesday.
New
2025.02.11 23:07EUR outperforms on the day - Scotiabank
ECB President Lagarde told EU lawmakers yesterday that inflationary pressures were easing and the central bank was on target to reach its 2% inflation goal this year, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.02.11 23:06CAD underperforms on steel tariff threat - Scotiabank
The Canadian Dollar (CAD) is softer in response to the latest tariff threat from the US, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.02.11 23:01USD mixed as markets digest latest tariff news - Scotiabank
Markets are having a relatively muted reaction to the latest round of tariff threats from President Trump--25% tariffs on all steel and aluminum imports, effective March 12th, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.02.11 22:58Fed's Hammack: Likely appropriate to hold rates steady for some time
Federal Reserve Bank of Cleveland President Beth Hammack said on Tuesday that it will likely be appropriate to hold interest rates steady for some time, as reported by Reuters.
New
2025.02.11 22:47US Dollar consolidates ahead of Fed Chairman Powell's speech
The US Dollar Index (DXY), which tracks the performance of the US Dollar against six major currencies, is broadly flat and still resides above 108.00.
New
2025.02.11 20:55EU's gas storage targets are under pressure - Rabobank
Europe continues to face high energy prices due to gas supply concerns, global trade tensions, and low wind levels.
New
2025.02.11 20:35Disclaimer:
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.
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
