US VP Vance says talks between US and Iran had made “very good progress”

Lallalit Srijandorn FXStreet

US Vice President (VP) JD Vance said that talks between the United States (US) and Iran have made “great progress” despite “threatening” and “whining,” CNBC reported on Tuesday.

“Yes, there was a little bit of threatening, there was a little bit of whining, but at the end of the day, the talks continued, and we made great progress,” said Vance.

Earlier on Monday, Vance stated that negotiations in Bürgenstock, Switzerland, were continuing and Tehran had agreed to permit International Atomic Energy Agency (IAEA) inspectors back into Iran.

The US Vice President added that Tehran’s agreement for IAEA inspectors to return to their country was “a major milestone for the American people and the first step in permanently denuclearizing or permanently ending a nuclear weapons program in Iran.”

Meanwhile, Iran’s Foreign Minister Abbas Araghchi also said the talks had yielded “major progress.”

Market reactio

At press time, the WTI Oil price trades 0.05% higher at around $73.95.

WTI Oil FAQs

What is WTI Oil?

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.

What factors drive the price of WTI Oil?

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.

How does inventory data impact the price of WTI Oil

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.

How does OPEC influence the price of WTI Oil?

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.

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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