Market price of a barrel of Brent crude (March 26, 2024)

After rising to $86.51 yesterday, the price of a barrel of Brent crude closed the day at $86.08. As of 10:56 a.m. today, the price of a barrel of Brent crude was $85.91, a 0.24 percent decrease from the closing price. At the same time, a barrel of West Texas Intermediate (WTI) crude was finding buyers at $81.72.

The adoption yesterday of a draft resolution at the 15-member United Nations Security Council (UNSC)—prepared by non-permanent members Algeria, Ecuador, Guyana, Japan, Malta, Mozambique, South Korea, Sierra Leone, Slovenia, and Switzerland, and demanding an immediate ceasefire during the month of Ramadan leading to a lasting and sustainable ceasefire in Gaza—with 14 "yes" votes and 1 "abstention" reduced supply concerns and contributed to a partial decline in prices.

The United States' decision to abstain, however, increased expectations that tensions in the region would continue for a long time, limiting the decline in prices.

White House National Security Communications Advisor John Kirby stated in a daily press briefing that the U.S. vote did not represent any change in the country's policy.

Israeli Foreign Minister Yisrael Katz's statement in response to the UNSC resolution, "Israel will not cease fire. We will destroy Hamas," also provided upward support for oil prices.

Along with all of this, concerns remain high that attacks by the Iran-backed Houthis on commercial ships in the Red Sea, in response to Israel's attacks in Gaza, will cause supply disruptions.

In addition to geopolitical risks, Russia's decision to cut production due to a drone attack on its largest oil refinery in the south continues to support oil prices upward. 

It is noted that technically, the $86.74 to $87.41 range can be monitored as a resistance zone for Brent crude, while the $85.17 to $84.27 range can be monitored as a support zone.

News Source: 12punto