US Finance Minister Scott Bessent said on Friday that we will soon see rebalans, where India will soon buy less Russian oil.
Key quotes
Soon we will see rebalans where India buys less Russian oil.
India will begin to rebalans over the next few weeks and months in favor of American oil.
Argentina’s leader comes to Oval Office next Tuesday.
This is not a rescue for Argentina.
Argentine peso is underestimated.
Exchange Stabilization Fund does not lose money to help Argentina.
Argentina is rich in minerals that are engaged to US companies entering this sector.
Says he thinks the Chinese will return at the end of the season and buy soybeans.
If it wasn’t for closure, we would have announced support to farmers.
Market reaction
At the time of writing, the USD/INR par is 0.10% higher on the day to shop at 89.00.
WTI OIL ORDER SOMEONE QUESTIONS
WTI oil is a type of crude oil sold in international markets. WTI stands for West Texas Intermediate, one of three main types, including Brent and Dubai crude oil. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content. It is considered an oil of high quality that is easily refined. It is obtained in the US and distributed via Cushing Hub, which is considered “the world’s pipeline trips”. It is a benchmark for the oil market and the WTI prize is often cited in the media.
Like all assets, supply and demand are the most important driving forces for WTI oil price. As such, global growth can be a driving force for increased demand and vice versa for weak global growth. Political instability, wars and sanctions can interfere with supply and affect prices. The decisions from OPEC, a group of larger oil -producing countries, are another important driving force for the price. The value of the US dollar affects the price of WTI -raw oil as oil is predominantly traded in US dollars and therefore a weaker US dollar can make oil more affordable and vice versa.
The weekly oil retention reports published by the American Petroleum Institute (API) and Energy Information Agency (EIA) affect the price of WTI oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a decrease in inventory, it may indicate increased demand and push up the oil price. Higher inventories can reflect increased supply and push prices down. API’s report is published every Tuesday and EIA’s the following day. Their results are usually the same and fall within 1% of each other 75% of the time. EIA data is considered more reliable as it is a government agency.
OPEC (organizing the oil export countries) is a group of 12 oil -producing nations that together decide production quotas for Member States at twice annual meetings. Their decisions often affect WTI oil prices. When OPEC decides to lower quotas, it can tighten the 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 whose most notable is Russia.