Brent crude oil price at $76.79 per barrel

After rising to as high as $77.35 yesterday, the price of a barrel of Brent crude oil closed the day at $76.61. As of 09:35 today, the price of a barrel of Brent crude oil was $76.79, an increase of 0.23 percent from the previous close. At the same time, West Texas Intermediate (WTI) crude oil was trading at $71.68 per barrel.

The rise in oil prices was driven by favorable interest rate policies from global central banks and increasing oil demand in the United States, the world's largest oil-consuming country.

Following the U.S. Federal Reserve's (Fed) decision to keep interest rates steady mid-week, the European Central Bank and the Bank of England also announced yesterday that they would not be changing their interest rates. The Fed's signal that it could begin interest rate cuts next year, combined with data supporting hopes for a "soft landing" in the economy, is expected to increase economic activity and oil demand.

Furthermore, data regarding strong oil demand in the U.S. continues to support the upward movement of prices. According to data from the U.S. Energy Information Administration, commercial crude oil inventories in the country decreased by approximately 4 million 300 thousand barrels last week. Market expectations were for a decrease of 1 million 500 thousand barrels.

The International Energy Agency (IEA) reported that global oil production decreased by 120 thousand barrels per day in November compared to the previous month, falling to 102 million 130 thousand barrels. During the same period, OPEC crude oil production also decreased by approximately 100 thousand barrels per day to 28 million 100 thousand barrels. Concerns over potential supply shortages in global markets are supporting the rise in prices.

The IEA also shared positive data regarding oil demand. According to the IEA, global oil demand is expected to reach 101 million 700 thousand barrels per day this year, an increase of approximately 2 million 300 thousand barrels per day compared to last year. Approximately 80 percent of this increase is expected to come from China, the world's second-largest oil consumer.

Technically, it is stated that the $77.03 to $77.09 range can be monitored as a resistance zone for Brent crude, while the $76.71 to $76.61 range can be monitored as a support zone.

News Source: 12punto