Created
: 2024.11.13
- 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 drops to near $68.00 as OPEC cuts demand view
Breaking news
WTI drops to near $68.00 as OPEC cuts demand view
New
2024.11.13 09:00
2024.11.13 09:00
2024.11.13 09:00
- WTI price remains on the defensive near $68.00 in Wednesday's early Asian session.
- OPEC's latest downward revision for demand growth, a stronger USD and weak China demand drag the WTI price lower.
- Investors will focus on the US CPI inflation data, which is due later on Wednesday.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $68.00 on Wednesday. The WTI price edges lower after the Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for global oil demand growth in 2024.
OPEC's latest downward revision for demand growth exerts some selling pressure on the black gold. OPEC stated in a monthly report on Tuesday that world oil demand will rise by 1.82 million barrels per day (bps) in 2024, down from growth of 1.93 million bpd it expected last month. OPEC also lowered its 2025 global demand growth estimate to 1.54 million bpd from 1.64 million bpd, marking the producer group's fourth consecutive downward revision.
Disappointment over China's latest stimulus plan undermines the WTI price as China is the world's second-biggest oil consumer. Last week, China announced a stimulus plan of 10 trillion yuan, but analysts worry that it would not be enough to stimulate the economy. This, in turn, has raised fears about China's likely decline in oil consumption.
The stronger US Dollar (USD) contributes to the WTI's downside as it makes USD-denominated Oil prices more expensive. Meanwhile, the US Dollar Index (DXY), a measure of the USD's value relative to a basket of foreign currencies, climbs to fresh six-month peaks past the 106.00 barrier. Investors will keep an eye on the US October Consumer Price Index (CPI) inflation data on Wednesday for fresh impetus. In case of the surprise softer-than-expected outcome, this could weigh on the Greenback and help limit the WTI's losses.
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
: 2024.11.13
Related articles
Crude Oil under pressure after monthly IEA report
2024.11.14 22:40WTI recovers to near $68.00, stronger US Dollar might cap its gains
2024.11.14 08:56Crude Oil trades stuck at $68 level ahead of API stockpile data
2024.11.13 20:23USD/CAD appreciates to near 1.3950 as traders adopt caution ahead of US CPI figures
2024.11.13 16:15WTI drops to near $68.00 as OPEC cuts demand view
2024.11.13 08:59US government buys oil for strategic reserves yet again - Commerzbank
2024.11.12 23:22
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
NZD/USD Price Analysis: Pair logs three consecutive losses, RSI oversold
The NZD/USD pair declined by 0.65% during Thursday's session and fell below the 0.5900 mark, extending declines for the sixth day and hitting lows since November 2023.
New
2024.11.15 07:23NZD/JPY Price Analysis: Pair stuck in range, moves sideways
The NZD/JPY pair declined mildly to 91.40 on Thursday's session and continued trading within the range of 92.00-91.00.
New
2024.11.15 06:34Gold price consolidates amid strong US Dollar, robust PPI data
Gold recovers some ground on Thursday yet remains trading below its opening price for the fifth consecutive day, undermined by the Greenback's advance for its own fifth consecutive day.
New
2024.11.15 05:36Australian Dollar declines on weak labor data, US Dollar hits yearly high
The AUD/USD declined by 0.34% to 0.6470 in Thursday's session, extending its decline to a fresh three-month low of 0.6460.
New
2024.11.15 05:00Forex Today: Attention is back to the real economy
The US Dollar continued its ascent, reaching fresh 2024 highs, even as the Trump-led rally showed signs of slowing and US yields dipped slightly ahead of a busy economic calendar on Friday.
New
2024.11.15 04:41Banxico lower rates by 25 basis points, signals further easing
The Bank of Mexico cut rates by 25 basis points for the fourth time since March 21, diminishing Mexico's primary reference rate from 10.50% to 10.25%.
New
2024.11.15 04:26Powell speech grabs attention in the American afternoon, focus on Trump
Federal Reserve (Fed) Chairman Jerome Powell is due to participate in a panel discussion titled "Global Perspectives" at an event hosted by the Federal Reserve Bank of Dallas this Thursday, and speculative interest eagerly awaits his words.
New
2024.11.15 03:30Dow Jones Industrial Average cools as post-election rally chills
The Dow Jones Industrial Average (DJIA) pumped the brakes on the recent post-election rally that saw a decisive win for presidential candidate and former President Donald Trump.
New
2024.11.15 03:23US Dollar softens after reaching yearly high on Dollar Index
The US Dollar Index (DXY), a measure of the value of the USD against a basket of six currencies, softened after hitting a fresh year-to-date high near 107.00.
New
2024.11.15 03:20Mexican Peso steadies ahead of Banxico's rate decision amid hot US inflation data
The Mexican Peso wavers against the US Dollar on Thursday after snapping three days of losses on Wednesday.
New
2024.11.15 02:34Disclaimer:
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
