Brent crude oil price changes on the first day of the week

The barrel price of Brent crude oil, which rose to 83.84 dollars on Friday, closed last week at 82.08 dollars. As of 09.45 today, the barrel price of Brent crude oil decreased by 0.48 percent compared to last week's close, falling to 81.69 dollars. Meanwhile, the barrel of West Texas Intermediate (WTI) crude oil was trading at 77.56 dollars.

Concerns that China, the world's largest crude oil importer, will reduce its oil demand have been effective in the decline in prices.

According to data released in China last week, although the Consumer Price Index (CPI) rose slightly for the first time in 6 months in February due to increased spending during the Spring Festival holiday period when the Lunar New Year was celebrated, the 16-month decline in prices continued.

The fact that the country's oil imports, despite increasing by 5.1 percent in the first two months of the year compared to the same period of the previous year, remained low compared to previous months also causes concerns that demand will weaken.

Assessments that it will be difficult for China, which has set its economic growth target for this year at approximately 5 percent, to reach this target without further stimulus also increase expectations that the country's oil demand will decrease.

While uncertainty continues regarding when the US Federal Reserve (Fed) will begin interest rate cuts, eyes have turned to the country's inflation data to be announced tomorrow. Non-farm payrolls in the US increased in February, but while the unemployment rate rose to its highest level in two years, average hourly earnings recorded their lowest increase since February 2022.

These mixed signals from the macroeconomic data released in the US last week also led to fluctuations in prices.

Developments regarding the Israel-Palestine conflict and the Russia-Ukraine War continue to put upward pressure on prices.

Experts state that technically, the 81.86 to 82.53 dollar range can be monitored as the resistance zone for Brent crude, and the 81.19 to 80.52 dollar range as the support zone.

News Source: AA