US President Donald Trump just confirmed on Truth Social that US representatives are traveling to Islamabad, where negotiations with Iran will take place on Monday. However, he also complained about Tehran’s decision to close the Strait of Hormuz again and again threatened to destroy all Iranian power plants and bridges.
Iran decided yesterday to fire bullets in the Strait of Hormuz – a complete violation of our ceasefire agreement! Many of these were directed against a French ship and a freighter from the United Kingdom. That wasn’t nice, was it? My representatives are traveling to Islamabad, Pakistan – they will be there tomorrow evening for negotiations. Iran recently announced that they would close the strait, This is strange because our BLOCKADE has already closed it. They are helping us without knowing it and they are the ones who are losing $500 million a day with the closed passage! The United States loses nothing. In fact, many ships are currently on their way to the US, Texas, Louisiana and Alaska for loading, a compliment from the IRGC, which always wants to be “the tough guy”! We are offering a very fair and reasonable OFFER and I hope they accept it because if they don’t, The United States will shut down every single power plant and every single bridge in Iran. NO MORE MR. NICE GUY! They will go down quickly, they will go down easily, and if they don’t accept the deal, I will be honored to do what needs to be done, what other presidents over the last 47 years should have done to Iran. It’s time for the KILLING MACHINE IRAN to end! President DONALD J. TRUMP”
Frequently asked questions about WTI oil
WTI oil is a type of crude oil sold in international markets. WTI stands for West Texas Intermediate, one of three main grades including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” due to its relatively low gravity and sulfur content, respectively. It is considered a high-quality oil that is easy to refine. It is sourced in the United States and distributed through the Cushing hub, considered the “pipeline hub of the world.” It is a benchmark for the oil market and the WTI price is often quoted in the media.
As with all assets, supply and demand are the main drivers of WTI oil prices. Global growth can therefore be a driver of increased demand and, conversely, 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, are another important price driver. The value of the US dollar influences the price of WTI crude oil because oil is predominantly traded in US dollars, so a weaker US dollar can make oil more affordable and vice versa.
The weekly oil inventory reports from the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI oil. Inventory changes reflect fluctuating supply and demand fluctuations. If the data shows a decline in inventories, it may indicate increased demand that is driving up the price of oil. Higher inventories may be due to increased supply, depressing prices. The API report is published every Tuesday and the EIA report is published the following day. Their results are usually similar and are within 1% of each other 75% of the time. The EIA data is considered more reliable because it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 oil-producing countries that jointly decide on production quotas for member countries at meetings that take place twice a year. Their decisions often impact WTI oil prices. If OPEC decides to cut quotas, it could tighten supply and drive up oil prices. If OPEC increases production, it will have the opposite effect. OPEC+ refers to an expanded group that includes ten other non-OPEC members, the most notable of which is Russia.
