The West Texas Intermediate (WTI) Oil price maintains its position above its two-month low of $68.29, recorded on February 26. Currently hovering around $68.70 per barrel during European trading hours on Thursday, WTI Oil continues to navigate a complex array of market influences. This stabilization comes amid notable geopolitical and economic developments, including the revocation of Chevron Corp.'s license in Venezuela by former US President Donald Trump, and ongoing global supply concerns.
WTI Oil, a major type of crude oil traded on international markets, is subject to fluctuations driven by various factors. A key influencer is the Organization of the Petroleum Exporting Countries (OPEC), alongside an expanded group known as OPEC+, which includes ten additional non-OPEC members, prominently featuring Russia. This coalition's decisions significantly impact oil prices worldwide.
Weekly oil inventory reports from the American Petroleum Institute (API) and the Energy Information Agency (EIA) further shape WTI Oil prices. While both sets of data are influential, the EIA's reports, being government-issued, are considered more reliable. Historically, results from these reports align closely, with discrepancies of less than 1% occurring 75% of the time.
In recent developments, the United States and Ukraine have reportedly reached a draft minerals deal, crucial for securing Washington's support. This agreement reflects broader geopolitical maneuvers that indirectly affect the oil markets. Concurrently, Trump's announcement to revoke Chevron's license in Venezuela has stirred controversy, particularly from Venezuelan Vice President Delcy Rodriguez. This decision prevents Chevron from exporting Venezuelan crude, adding another layer of complexity to global oil supply dynamics.
The decision to revoke Chevron’s license comes amid broader supply concerns that have lent some support to WTI Oil prices. These concerns, coupled with uncertainties surrounding Trump's tariff plans and trade war fears, may serve as tailwinds for related financial instruments such as the XAU/USD pair.
The value of the US Dollar also plays a critical role in determining WTI Crude Oil prices, given that oil is predominantly traded in US Dollars. A weaker US Dollar typically makes oil more affordable for international buyers, thereby influencing demand and pricing. Conversely, a stronger US Dollar can exert upward pressure on oil prices by making it more expensive for buyers using other currencies.