US President Donald Trump describes position with Iran as brilliant

The US has no immediate plans to attack Iran, US President Donald Trump said on Tuesday, according to the Financial Times. Saying that "we appear to be achieving all our objectives," Trump also characterised the position regarding Tehran as "a brilliant situation."

In a security alert updated on Tuesday, the US Embassy in Saudi Arabia warned American citizens that Iranian-backed Houthi forces could launch further attacks on airports and critical infrastructure, Reuters reported. The embassy also imposed travel restrictions on its staff covering areas that include the kingdom’s principal oil-producing and export regions.

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

A drone that the Saudi-led coalition said had been launched by the Houthis towards southern Saudi Arabia was intercepted and destroyed, the coalition reported on Tuesday.

0.01% gain for WTI

$95.77 is the price of West Texas Intermediate (WTI) at the time of writing, representing a 0.01% gain on the day.

WTI Oil: Key Questions Answered

WTI Oil: Definition and Characteristics

Among the crude oils traded internationally, WTI, short for West Texas Intermediate, is one of three major types alongside Brent and Dubai Crude. Its relatively low gravity and sulphur content earn it the descriptions “light” and “sweet”, respectively. This high-quality oil is considered 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: Main Price Drivers

Supply and demand underpin WTI oil prices, as they do for all assets. Stronger global growth can lift demand, while weaker growth can have the reverse effect. Supply disruptions caused by political instability, wars and sanctions can also affect prices. Another major influence is policy set by OPEC, a group of leading oil-producing countries. Because oil is traded predominantly in US Dollars, the value of the US Dollar also affects WTI crude prices. A weaker US Dollar can make oil more affordable, while a stronger currency can do the opposite.

Weekly Inventories: Their Impact on WTI Oil Prices

WTI oil prices respond to weekly inventory figures from the American Petroleum Institute (API) and the Energy Information Agency (EIA). Stock changes signal shifts in supply and demand: a drawdown can point to stronger demand and lift prices, whereas a build can indicate greater supply and weigh on prices. The API releases its report each Tuesday, followed by the EIA the next day. The two reports typically show similar results, coming within 1% of one another 75% of the time. As the EIA is a government agency, its figures are regarded as more reliable.

12 OPEC Members: Their Influence on WTI Oil Prices

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 influence WTI oil prices. Lower quotas can restrict supply and push prices higher; increased production has the reverse effect. The broader OPEC+ grouping includes ten additional non-OPEC members, with Russia the most notable.