WTI holds gains above $70.00 due to rising concerns over Russia-Ukraine peace deal – Crypto News – Crypto News
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WTI holds gains above $70.00 due to rising concerns over Russia-Ukraine peace deal WTI holds gains above $70.00 due to rising concerns over Russia-Ukraine peace deal

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WTI holds gains above $70.00 due to rising concerns over Russia-Ukraine peace deal – Crypto News

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  • WTI gains ground as supply concerns grow following a heated argument between Trump and Zelenskiy.
  • The deal of US-Ukraine’s rare earth minerals was abandoned after a heated exchange between the two leaders.
  • Turkey aims for the Iraq-Turkey oil pipeline to operate at full capacity once flows resume through Ceyhan.

West Texas Intermediate (WTI) Oil price recovered its recent losses registered in the previous session, trading around $70.10 per barrel during the Asian hours on Monday. Crude Oil prices rise as tensions escalated between US President Donald Trump and Ukrainian leader Volodymyr Zelenskyy during peace deal negotiations, which added concerns about the Russia-Ukraine conflict.

Ukrainian leader Zelenskyy was expected to sign an agreement granting the US greater access to Ukraine’s rare earth minerals and participate in a joint press conference, but the plan was abandoned after a heated exchange between the leaders in front of the media. Following the confrontation, in which Trump openly expressed his disdain, top advisers asked Zelenskyy to leave the White House.

However, the upside of Oil prices could be restrained amid rising fears of weaker global demand following escalating US-China trade tensions. Over the weekend, US President Donald Trump announced an additional 10% tariff on Chinese imports starting Tuesday, adding to the 10% tariff imposed last month. On Thursday, Trump stated on Truth Social that 25% tariffs on Canadian and Mexican goods will take effect on March 4.

According to a Reuters report, Turkish Energy Minister Alparslan Bayraktar said, according to the state-owned Anadolu news agency on Sunday, that Turkey wants the Iraq-Turkey Oil pipeline to run at full capacity once operations resume through Ceyhan.

However, on Friday, eight international Oil companies operating in Iraq’s Kurdistan region stated they would not restart Oil exports through Ceyhan, despite Baghdad’s announcement that the resumption was imminent.

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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