Oil: Trump signing a directive to increase economic pressure on Iran – ING

There were two key factors influencing oil prices yesterday, firstly downward pressure came from China announcing retaliatory tariffs against the US, which included targeting US energy flows. However, countering this later in the session was President Trump signing a directive to increase economic pressure on Iran by enforcing sanctions more strictly and so putting a large share of Iranian oil exports at risk, ING’s commodity expert Warren Patterson notes.

US stance on Iran makes the market claw back the losses

“On China’s retaliatory tariffs, US crude oil and LNG were included, with a 10% and 15% tariff, respectively. However, with these tariffs only coming into force on 10 February, there is still room for a deal, although there are reports that President Trump is in no rush to talk to President Xi. The tariffs on oil and LNG affect a relatively small share of Chinese imports. In 2024, of the

Oil: Trump signing a directive to increase economic pressure on Iran – ING

5 February 2025, 12:22

There were two key factors influencing oil prices yesterday, firstly downward pressure came from China announcing retaliatory tariffs against the US, which included targeting US energy flows. However, countering this later in the session was President Trump signing a directive to increase economic pressure on Iran by enforcing sanctions more strictly and so putting a large share of Iranian oil exports at risk, ING’s commodity expert Warren Patterson notes.

US stance on Iran makes the market claw back the losses

“On China’s retaliatory tariffs, US crude oil and LNG were included, with a 10% and 15% tariff, respectively. However, with these tariffs only coming into force on 10 February, there is still room for a deal, although there are reports that President Trump is in no rush to talk to President Xi. The tariffs on oil and LNG affect a relatively small share of Chinese imports. In 2024, of the 11.11m b/d of crude oil imported, only 1.7% came from the US. For LNG, of the 105bcm imported last year, 5.6% came from the US.”

“On the more bullish side for crude and as reflected in the price action during the latter part of yesterday’s trading session, was President Trump’s directive to increase economic pressure on Iran. This move shouldn’t come as too much of a surprise given that President Trump was hawkish towards Iran during his first term and reimposed oil sanctions against Iran back then. These sanctions were never lifted by Biden, but they were not enforced strictly.”

“Overnight, API numbers showed that US crude oil inventories increased by 5m barrels over the last week, above the roughly 2m barrels build the market was expecting. In addition, gasoline inventories increased by 5.4m barrels, while distillate stocks fell by 7m barrels. The more widely followed EIA inventory report will be released later today.”

11.11m b/d of crude oil imported, only 1.7% came from the US. For LNG, of the 105bcm imported last year, 5.6% came from the US.”

“On the more bullish side for crude and as reflected in the price action during the latter part of yesterday’s trading session, was President Trump’s directive to increase economic pressure on Iran. This move shouldn’t come as too much of a surprise given that President Trump was hawkish towards Iran during his first term and reimposed oil sanctions against Iran back then. These sanctions were never lifted by Biden, but they were not enforced strictly.”

“Overnight, API numbers showed that US crude oil inventories increased by 5m barrels over the last week, above the roughly 2m barrels build the market was expecting. In addition, gasoline inventories increased by 5.4m barrels, while distillate stocks fell by 7m barrels. The more widely followed EIA inventory report will be released later today.”

By |2025-02-12T16:23:41+05:30February 12, 2025 4:23 pm|Crude Oil|Comments Off on Oil: Trump signing a directive to increase economic pressure on Iran – ING
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WTI remains on the defensive near $71.00 amid a rise in US oil stockpiles and concern about US-China trade

  • WTI price edges lower to around $71.00 in Thursday’s early Asian session.
  • US crude oil stockpiles rose by 8.664 million barrels last week, according to the EIA. 
  • Oil traders worry about China-US trade. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $71.00 during the early Asian session on Thursday. The WTI price edges lower amid a large build in US crude stockpiles and worries about renewed US-China trade tensions.

US crude inventories rose sharply last week, signaling weaker demand. The US Energy Information Administration (EIA) weekly report showed crude oil stockpiles in the United States for the week ending January 31 climbed by 8.664 million barrels, compared to a rise of 3.463 million barrels in the previous week. The market consensus estimated that stocks would increase by 3.2 million barrels.

Concerns of a potential trade war between the United States and China, the world’s top energy importer, could exert some selling pressure on the WTI price. On Tuesday, China’s finance ministry announced a package of tariffs on a range of US products, including crude oil, farm equipment, and some autos in an immediate response to a 10% tariff on Chinese imports announced by US President Donald Trump. Additionally, China put several companies, including Google, on notice for possible sanctions in a measured response to Trump’s tariffs.

On Wednesday, Iran’s President Masoud Pezeshkian called OPEC members to unite against potential US sanctions after Trump’s announcement of resuming the “maximum pressure” campaign against Iran during his first term. Meanwhile, Russia’s Deputy Prime Minister Alexander Novak said that the group of ministers from OPEC and allies headed by Russia (OPEC+) reviewed Trump’s proposal to increase production and decided that OPEC+ would begin increasing output on April 1 in accordance with previous plans.

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.

By |2025-02-10T12:39:27+05:30February 10, 2025 12:39 pm|Crude Oil|Comments Off on WTI remains on the defensive near $71.00 amid a rise in US oil stockpiles and concern about US-China trade
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WTI price remains above $71.00 as Saudi Aramco raises march oil prices for Asia

  • WTI price received support as Saudi Aramco raised prices for Asian buyers amid rising demand, along with supply disruptions.
  • EIA Crude Oil Stocks Change showed an 8.664 million-barrel increase for the previous week, against an expected 2.6 million-barrel increase.
  • China’s tariffs on American crude oil have raised concerns over weakened global demand.

West Texas Intermediate (WTI) Oil price holds modest gains after three consecutive days of losses, trading around $71.10 per barrel during European trading hours on Thursday. This rebound in crude Oil prices comes after Saudi Arabia’s state Oil giant, Aramco, raised prices for Asian buyers.

Aramco’s price hike was driven by rising demand from China and India, along with disruptions to Russian supply due to US sanctions. Further supply risks persist as US President Donald Trump’s renewed push to eliminate Iran’s Oil exports could remove up to 1.5 million barrels per day from the market.

On Wednesday, Oil prices dropped more than 2% as a sharp increase in US crude and gasoline stockpiles signaled weaker demand. US crude inventories surged by 8.664 million barrels for the week ending January 31, 2025, the largest build in nearly a year, far exceeding market expectations of a 2.6 million-barrel increase. Meanwhile, distillate stockpiles, which include diesel and heating Oil, declined by 5.471 million barrels, compared to an expected draw of 1.5 million barrels.

Adding to market pressure, ongoing US-China trade tensions intensified as China imposed tariffs on American coal, LNG, and crude Oil, fueling concerns over weakened global demand. Additionally, these retaliatory measures could lead to a decline in US Oil exports in 2025 for the first time since the COVID-19 pandemic, following a plateau in growth last year.

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.

By |2025-02-10T12:05:27+05:30February 10, 2025 12:05 pm|Crude Oil|Comments Off on WTI price remains above $71.00 as Saudi Aramco raises march oil prices for Asia
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WTI extends downside below $70.50 as US-China trade war intensifies

  • WTI price extends its decline to around $70.35 in Friday’s early Asian session.
  • Worries about US-China trade tensions continue to undermine the WTI price. 
  • Escalating Middle East geopolitical tensions might cap the downside for the black gold. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $70.35 during the early Asian session on Friday. The WTI price edges lower amid concerns of weakening demands after China announced a retaliatory tariff on US crude oil imports, while the US inventory rose for the second consecutive week.

The renewed US-China trade war could weigh on the WTI price. Investors are increasingly worried about a slowing global economy and weakening energy demand in China, the world’s top oil importer. On Tuesday, China’s finance ministry announced a package of tariffs on a range of US products, including crude oil, farm equipment, and some autos in an immediate response to a 10% tariff on Chinese imports announced by US President Donald Trump.

The US reported a much bigger-than-anticipated jump in crude stockpiles last week, signaling weaker demand. The US Energy Information Administration (EIA) weekly report showed crude oil stockpiles in the United States for the week ending January 31 jumped by 8.664 million barrels, compared to a rise of 3.463 million barrels in the previous week. The market consensus estimated that stocks would increase by 3.2 million barrels.

On the other hand, the rising geopolitical tensions in the Middle East could provide some support to the WTI price. Trump has proposed seizing control of Gaza, which might exacerbate regional tensions. He is also anticipated to tighten sanctions on Iran, having expressed his desire to reduce Tehran’s oil exports to zero.

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.

By |2025-02-10T06:24:43+05:30February 10, 2025 6:24 am|Crude Oil|Comments Off on WTI extends downside below $70.50 as US-China trade war intensifies
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WTI Price Analysis: Oil prices rise after NFP data

  • WTI crude oil surges as US labor market data fuels demand optimism.
  • Nonfarm payrolls miss expectations, but wage growth remains strong.
  • Labor force participation rate edges higher, supporting energy demand outlook.

The West Texas Intermediate (WTI) crude oil prices climbed on Friday to around $70.80, buoyed by renewed optimism over energy demand following the latest US labor market report. While Nonfarm Payrolls (NFP) data revealed a weaker-than-expected 143K job additions in January, the overall labor market resilience and steady wage growth helped drive crude prices higher.

Despite the soft job additions, the US unemployment rate held firm at 4%, aligning with expectations. Wage growth remained solid, with average hourly earnings rising 0.5% month-over-month, in line with forecasts, while the year-over-year figure reached 4.1%, surpassing the anticipated 3.9%. Additionally, the labor force participation rate ticked up to 62.6%, reinforcing expectations of sustained economic activity and energy consumption.

It worth noticing that weak economic dat might prompt the Fed to consider sooner rate cuts and hence economic activity might flourish which could push demand for oil higher and benefit the price.

WTI crude oil is trading above $70.50 per barrel, testing a key resistance level at $71.00. A successful break above this threshold could pave the way for further gains, while immediate support lies at $70.00. Traders will closely monitor upcoming macroeconomic developments for additional market direction.

 

 

By |2025-02-08T12:27:54+05:30February 8, 2025 12:27 pm|Crude Oil|Comments Off on WTI Price Analysis: Oil prices rise after NFP data
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By |2024-10-14T12:42:44+05:30October 14, 2024 12:42 pm|Admin, Crude Oil, Gold Silver|Comments Off on Welcome to PM Financials – Your Pathway to Global Markets!
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Welcome to PM Financials – Your Gateway to Global Trading!

Hi everyone, I am Hasil Haneefa, Account manager at PM Financials Ltd.

We are excited to invite traders and Introducing Brokers (IBs) to join the PM Financials community, where excellence meets opportunity. As a globally regulated broker, PM Financials offers unparalleled access to the world’s most liquid financial markets, including Forex, CFDs, commodities, indices, and more. With a commitment to innovation and client-centric service, we provide cutting-edge trading platforms and seamless execution designed to empower every trader, from beginners to professionals.

At PM Financials, we value our IB partners and offer attractive compensation packages, advanced trading solutions, and comprehensive support to ensure their success. Our secure and reliable platform, coupled with industry-leading technology and low-latency execution, provides traders and IBs the tools and confidence needed to thrive in the dynamic financial landscape.

Begin your trading journey or expand your network with PM Financials. Let’s shape the future of online trading together!

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Account Manager
PM Financials
Phone: +971 58 575 2036
Email: [email protected]
WhatsApp: http://wa.me/971585752036
Website: PM Financials – PM Financials Limited

By |2024-10-09T16:56:09+05:30October 9, 2024 4:56 pm|Admin, Crude Oil, Gold Silver|Comments Off on Welcome to PM Financials – Your Gateway to Global Trading!
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USD/CAD depreciates as mixed data from the US fuels speculations of a rate cut by the Fed.

WTI price appreciates as US mixed data fuel rate cut speculations by the Fed.
•A Reuters poll has indicated that nearly two-thirds of economists now predict an interest rate cut in September.
•EIA Crude Oil Stocks Change increased by 1.233 million barrels in the previous week, contrasting with the expected 2.300 million-barrel draw.

West Texas Intermediate (WTI) Oil price extends its gains for the second session, trading around $74.30 per barrel during the Asian session on Thursday. The appreciation in crude Oil prices could be attributed to the rising speculation of an interest rate cut by the US Federal Reserve (Fed) in September. Lower interest rates reduce the cost of borrowing in the United States, the largest Oil consumer. This can incentivize economic activity and potentially boost Oil demand.

The mixed economic data from the United States (US) on Wednesday fueled interest rate cut speculations by the US Federal Reserve (Fed). The ISM US Services PMI soared to 53.8 in May, marking its highest level in nine months and significantly surpassing the forecast of 50.8. In contrast, the ADP US Employment Change report showed that 152,000 new workers were added to payrolls in May, the lowest in four months and well below the forecast of 175,000 and the downwardly revised figure of 188,000 for April.

A Reuters poll conducted from May 31 to June 5 has indicated that nearly two-thirds of economists now predict an interest rate cut in September, offsetting recent bearish supply news from the Organization of the Petroleum Exporting Countries and its allies (OPEC+). According to the CME FedWatch Tool, the probability of a Fed rate cut in September by at least 25 basis points has increased to nearly 70.0%, up from 47.5% a week earlier.

The upside of Oil prices could be limited as the US Energy Information Administration (EIA) Crude Oil Stocks Change showed that crude Oil inventories increased by 1.233 million barrels in the week ending May 31. This marks a reversal from the preceding week’s 4.156 million-barrel decline and contrasts with market expectations of a 2.300 million-barrel draw.

 

WTI US OIL

 

Overview

Today last price 74.27
Today Daily Change 0.14
Today Daily Change % 0.19
Today daily open 74.13

 

Trends

Daily SMA20 77.65
Daily SMA50 80.71
Daily SMA100 79.08
Daily SMA200 79.46

 

 

Levels

Previous Daily High 74.15
Previous Daily Low 72.74
Previous Weekly High 80.41
Previous Weekly Low 76.52
Previous Monthly High 81.25
Previous Monthly Low 76.04
Daily Fibonacci 38.2% 73.61
Daily Fibonacci 61.8% 73.28
Daily Pivot Point S1 73.19
Daily Pivot Point S2 72.26
Daily Pivot Point S3 71.78
Daily Pivot Point R1 74.6
Daily Pivot Point R2 75.08
Daily Pivot Point R3 76.02

 

By |2024-06-06T12:02:49+05:30June 6, 2024 11:54 am|Crude Oil|Comments Off on USD/CAD depreciates as mixed data from the US fuels speculations of a rate cut by the Fed.
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