WTI stays above $61.00 due to tariff relief hopes, strong Chinese imports – Crypto News – Crypto News
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WTI stays above $61.00 due to tariff relief hopes, strong Chinese imports – Crypto News

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8 months ago

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  • WTI remains steady after President Trump hinted at potential new tariff exemptions for the auto industry.
  • China’s Oil imports in March climbed nearly 5% YoY, partly driven by increased purchases of Iranian Oil.
  • OPEC+ has lowered its Oil demand growth projections for both 2025 and 2026.

West Texas Intermediate (WTI) crude Oil price remains stable around $61.10 during Asian trading hours on Tuesday. A potential upside in crude prices is supported by recent comments from US President Donald Trump, who suggested the possibility of new tariff exemptions.

On Monday, Trump indicated he is considering temporary relief from the 25% tariffs on the auto sector, aiming to give manufacturers time to realign their supply chains. He also announced exemptions for key technology products under his new “reciprocal” tariffs, which helped boost global risk sentiment.

Additionally, crude prices gained momentum on Friday after the Trump administration announced tariff exclusions for smartphones, computers, and other electronic devices—many of which are sourced from China.

Oil prices also found support from a sharp rebound in Chinese crude imports. Data released on Monday showed China’s crude Oil imports in March rose nearly 5% year-over-year, fueled in part by increased purchases of Iranian Oil ahead of expected tighter US sanctions.

However, gains may be capped as OPEC+, the Organization of the Petroleum Exporting Countries and its allies, revised down its Oil demand growth forecasts for 2025 and 2026. The group now expects demand to rise by 1.3 million barrels per day (bpd) in 2025 and 1.28 million bpd in 2026—lower than previous estimates of 1.45 million and 1.43 million bpd, respectively—citing weak first-quarter data and the impact of new US trade measures.

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.

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