Iran: We maintain our policy of no flexibility on nuclear issue

Iran remains unwilling to soften its nuclear stance, according to comments from a senior Iranian official reported by Reuters. The official said, “Qatar has not presented a new proposal to end hostilities with us,” adding, “Qatar has put forward ideas that are unacceptable to Iran.” On the nuclear issue, he said that “Tehran’s policy on showing no flexibility over nuclear issue remains unchanged.”

How are oil prices reacting?

Oil prices are attracting modest buying interest after Iran's comments on Qatar's proposal. At the time of writing, WTI Oil is trading near $100.80, up over 1%.

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WTI Oil: Frequently Asked Questions

What does WTI Oil mean?

Among the types of crude oil traded internationally, WTI, or West Texas Intermediate, is one of three major varieties alongside Brent and Dubai Crude. Its relatively low gravity earns it the description “light”, while its low sulphur content makes it “sweet”. This high-quality oil is regarded as easy to refine. Sourced 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 in media reports.

What determines WTI Oil prices?

Supply and demand underpin WTI Oil prices, as they do for other assets. Stronger global growth can lift demand, whereas weaker growth can have the reverse effect. Supply disruptions caused by political instability, wars or sanctions can also affect prices. Another major influence is OPEC, a group of leading oil-producing countries whose decisions help shape prices. Because oil is traded predominantly in US Dollars, the currency's value also matters for WTI Crude Oil: a weaker US Dollar can make oil more affordable, while a stronger one can have the opposite effect.

Why do inventory figures affect WTI Oil prices?

WTI Oil prices respond to the weekly oil inventory figures released by the American Petroleum Institute (API) and the Energy Information Agency (EIA). Inventory movements offer an indication of shifts in supply and demand. A decline in stocks can signal stronger demand and push oil prices higher; a rise can point to greater supply and weigh on prices. The API releases its report every Tuesday, followed by the EIA the next day. The two sets of figures are generally close, coming within 1% of each other 75% of the time. As the EIA is a government agency, its data is regarded as more reliable.

Why do OPEC decisions matter for WTI Oil prices?

Production quotas agreed by OPEC (Organization of the Petroleum Exporting Countries) often influence WTI Oil prices. The group comprises 12 oil-producing nations that jointly set quotas for member countries at meetings held twice a year. A decision to cut quotas can restrict supply and lift oil prices, while an increase in production has the reverse effect. The broader OPEC+ grouping brings in ten additional non-OPEC members, with Russia the most notable among them.