Brent crude oil on the decline!

A barrel of Brent crude oil is trading at $82.66 in international markets.

After rising to $83.34 yesterday, the price per barrel of Brent crude closed the day at $82.77. As of 09:50 today, it has decreased by 0.13 percent compared to the closing price, falling to $82.66. At the same time, a barrel of West Texas Intermediate (WTI) crude oil was finding buyers at $77.80.

Expectations that the US Federal Reserve (Fed) will begin interest rate cuts later than anticipated, following inflation data in the US that exceeded expectations, and the expectation of an increase in the country's commercial crude oil inventories have pressured prices downward.

According to data released in the US yesterday, the Consumer Price Index (CPI) rose by 0.3 percent on a monthly basis and 3.1 percent on an annual basis in January.

Market analysts stated that the inflation data, which came in above market forecasts, indicates that the US economy remains robust, strengthening expectations that the Fed will not rush into interest rate cuts.

The strengthening of the dollar against major currencies and the pressure on dollar-indexed oil prices also negatively affected prices.

Furthermore, according to the American Petroleum Institute (API) forecast, commercial crude oil inventories in the US increased by approximately 8 million 520 thousand barrels last week compared to the previous week. This also supported the decline in oil prices.

On the other hand, geopolitical tensions in the Middle East are limiting the decline in oil prices. Developments such as the Iran-backed Houthis in Yemen targeting US and UK warplanes are among the factors supporting prices.

It is noted that for Brent crude, the $82.75 to $83.02 range can be technically monitored as a resistance zone, while the $82.27 to $82.06 range can be monitored as a support zone during the day.

News Source: AA