US President Donald Trump said Indian Prime Minister Narendra Modi has agreed to stop buying oil from Russia. Trump also said he would next try to get China to do the same as Washington seeks to tighten the financial grip on the Kremlin as part of efforts to end the war in Ukraine, the BBC reported late Wednesday.
In addition, US Treasury Secretary Scott Bessent said the administration expects Japan to stop buying and importing energy from Russia. “We discussed issues related to economic relations between the countries and our expectation that Japan will stop importing Russian energy,” Bessent said.
Frequently Asked Questions About WTI Oil
WTI Oil is a type of crude oil sold on international markets. WTI stands for West Texas Intermediate, one of three main types, 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 easily refined. It is sourced in the US and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the oil market and the WTI price is often quoted in the media.
Like all assets, supply and demand are the main drivers of the 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 affect prices. The decisions of OPEC, a group of major oil producing countries, are another important driver of the price. The value of the US dollar affects the price of WTI crude oil, as oil is predominantly traded in US dollars, so a weaker dollar can make oil more affordable and vice versa.
The weekly oil inventory reports released by the American Petroleum Institute (API) and the Energy Information Agency (EIA) influence the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If data shows a fall in inventories, it could indicate increased demand, pushing oil prices up. Higher inventories may reflect increased supply, pushing prices down. API’s report is published every Tuesday and EIAs the following day. Their results are usually similar and fall within 1% of each other 75% of the time. The EIA data is considered more reliable as it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 oil-producing nations that jointly decide on production quotas for the member countries at twice-yearly meetings. Their decisions often affect WTI oil prices. When OPEC decides to lower quotas, it can tighten supply and push up oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten additional non-OPEC members, the most notable of which is Russia.