Indirect US talks continue via intermediary countries, Iran’s Araghchi says

According to Iran's Foreign Minister Abbas Araghchi , indirect talks with the United States (US) remain under way through mediating countries, including Pakistan and Qatar, Reuters reported on Tuesday.

The Strait of Hormuz was meant to reopen fully on the sixth day of this period, Araghchi added. Although Washington accepted Iran's seven-day proposal, it sought several extra conditions. He declined to provide details of those conditions. Araghchi also showed that the US could not be trusted during negotiations.

A ground attack on Saudi Arabia remains an option, Yemen’s Houthi rebels declared, according to Iran's Sepah News. Their statement represents a marked escalation in the continuing regional conflict.

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

$98.05: WTI edges lower

$98.05 is the price of West Texas Intermediate (WTI) at the time of writing. It is down 0.02% on the day.

WTI Oil: Key Questions Answered

WTI Oil: Definition and Characteristics

Traded internationally, WTI Oil is a grade of crude oil. WTI stands for West Texas Intermediate and is one of three major grades, 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 determine WTI Oil prices, as they do for other assets. Stronger global growth can therefore lift demand, while weaker growth can have the reverse effect. Supply disruptions caused by political instability, wars and sanctions can affect prices. Decisions by OPEC, a group of major oil-producing countries, also play a central role. Because oil is traded mainly in US Dollars, the currency's value influences WTI Crude Oil prices. A weaker US Dollar can make oil more affordable; a stronger currency can do the reverse.

WTI Oil: The Impact of Inventory Data

Weekly inventory releases from the American Petroleum Institute (API) and the Energy Information Agency (EIA) affect WTI Oil prices by showing shifts in supply and demand. Falling stocks can signal stronger demand and push oil prices higher. Rising inventories, by contrast, can indicate greater supply and weigh on prices. Each Tuesday brings the API report, followed by the EIA release the next day. The two sets of figures generally align: 75% of the time, they are within 1% of each other. As the EIA is a government agency, its data is regarded as more reliable.

12 OPEC Nations: 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 affect WTI Oil prices. Lower quotas can constrain supply and lift oil prices, while increased OPEC output has the reverse effect. The wider OPEC+ group includes ten additional non-OPEC members, with Russia the most notable.