Brent crude oil price rises to $82.12 per barrel

After rising to as high as $82.46 on Friday, the price of a barrel of Brent crude oil closed the day at $81.84. As of 09:44, the price of a barrel of Brent crude increased by 0.34 percent to $82.12 compared to the closing price. At the same time, a barrel of West Texas Intermediate (WTI) crude oil was finding buyers at $77.98.

Oil prices suffered losses last week due to concerns that economic data from the US would keep interest rates high for a long time. Brent crude, which lost value for four consecutive days last week, ended the week with a 2.1 percent decline, while WTI crude oil finished with a 2.8 percent drop.

Prices began the new week with upward momentum. Analysts emphasized that according to data released on Friday, consumer confidence in the US, the world's largest oil-consuming country, has partially improved, stating that this situation supports the possibility of the US Federal Reserve (Fed) beginning interest rate cuts this year.

Lower interest rates cause the US dollar to weaken against other currencies, making oil cheaper for buyers using other currencies. In money markets, the probability of the Fed starting its first interest rate cut in September is priced at 50 percent, 63 percent in November, and 82 percent in December.

This situation increases investors' appetite for oil demand, driving prices upward.

Additionally, the expectation that gasoline demand in the US will increase with the approach of the summer season stands out as a supporting factor for oil prices. Data released last week by the US Energy Information Administration (EIA) showed that gasoline inventories in the country have decreased for the last 2 weeks.

On the other hand, expectations that the OPEC+ group, consisting of the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producer countries, will continue its voluntary crude oil supply cuts at the meeting to be held on June 2, support the rise in oil prices.

Technically, it is stated that the $82.83 to $83.55 range can be monitored as a resistance zone for Brent crude, while the $81.02 to $79.93 range can be monitored as a support zone.

News Source: AA