Iran: Our policy remains unchanged, with no flexibility on the nuclear issue

Reuters cited a senior Iranian official as saying: “Qatar has not presented a new proposal to end hostilities with us,” The official also said: “Qatar has put forward ideas that are unacceptable to Iran.” On the nuclear issue, he added that “Tehran’s policy on showing no flexibility over nuclear issue remains unchanged.”

Oil attracts modest buying interest

WTI Oil is trading over 1% higher near $100.80 at the time of writing. Modest buying interest has emerged in oil following the Iranian official’s comments on Qatar’s proposal.

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

WTI Oil: Key Questions

WTI Oil: What Does It Mean?

Traded internationally, WTI Oil is a grade of crude oil. WTI stands for West Texas Intermediate and is one of three major grades, alongside Brent and Dubai Crude. Its relatively low gravity and sulphur content give it the descriptions “light” and “sweet”, respectively. These properties make it a high-quality oil that is easy to refine. Produced in the United States, it is distributed through the Cushing hub, known as “The Pipeline Crossroads of the World”. WTI serves as an oil market benchmark, with its price regularly cited by the media.

WTI Oil Prices: The Main Drivers

Supply and demand determine WTI Oil prices, as they do for other assets. Stronger global growth can increase demand, while weaker growth can have the reverse effect. Supply disruptions caused by political instability, wars or sanctions can also affect prices. Another major influence is the production policy of OPEC, a group of leading oil-producing countries. As crude is traded predominantly in US Dollars, the currency’s value also affects WTI Crude Oil prices. A weaker US Dollar can make oil more affordable; a stronger currency can have the opposite effect.

WTI Oil Prices: The Role of Inventory Data

Weekly inventory figures from the American Petroleum Institute (API) and the Energy Information Agency (EIA) influence WTI Oil prices by indicating shifts in supply and demand. A decline in stocks can signal stronger demand and lift prices. Conversely, a rise in inventories can suggest greater supply and weigh on prices. The API releases its report every Tuesday, followed by the EIA the next day. The two reports generally show similar results: their figures are within 1% of each other 75% of the time. As the EIA is a government agency, its data is regarded as more reliable.

WTI Oil Prices: OPEC’s Influence

At meetings held twice a year, the 12 oil-producing nations in OPEC (Organization of the Petroleum Exporting Countries) jointly set production quotas for member countries. These decisions frequently affect WTI Oil prices. Lower quotas can restrict supply and lift prices, while an increase in OPEC production has the reverse effect. The broader OPEC+ group includes ten additional non-OPEC members, most notably Russia.