Brent crude oil trades at $78.62 per barrel in international markets

The price of a barrel of Brent crude oil, which rose to $77.98 on Friday, closed the day at $77.04. As of 09:53 today, the price of a barrel of Brent crude oil increased by 2.05 percent compared to the closing price, reaching $78.62. At the same time, West Texas Intermediate (WTI) crude oil was trading at $73 per barrel.

The rise in prices was driven by the increasing tension in the region following developments in the Red Sea.

As tensions escalate in the Red Sea between US forces and the Iran-backed Houthis in Yemen, news reports suggesting a confrontation between the US and Iran in the Red Sea are supporting oil prices upward.

According to Iran's semi-official Tasnim News Agency, the "Alborz" warship, under the command of the Iranian Navy's 94th Naval Fleet, passed through the Bab el-Mandeb Strait and entered the Red Sea as part of regular missions in international waters.

The US Central Command (CENTCOM) announced in a statement on its X social media account on Sunday that two anti-ship ballistic missiles fired from Houthi-controlled areas in Yemen toward a commercial vessel in the southern Red Sea had been shot down.

Houthi military spokesperson Yahya Saree stated in a post on the X social media platform, "The enemy US forces in the Red Sea attacked three boats belonging to the Yemeni naval forces (affiliated with the Houthis). 10 crew members were killed or went missing in the attack."

On the other hand, the expected increase in demand in China, the world's largest oil importer, is also supporting prices upward.

The increased mobility during the first New Year's holiday since the lifting of COVID-19 quarantine measures in China, along with expectations that the Chinese government will increase economic stimulus to support growth, are fueling strong demand forecasts.

Chinese President Xi Jinping promised in his New Year's speech to strengthen economic activity and job creation. According to data released today, China's Caixin manufacturing PMI exceeded expectations at 50.8.

Technically, it is stated that the $78.65 to $78.80 range can be monitored as resistance for Brent crude, while the $78.50 to $78.35 range can be monitored as a support zone.

News Source: 12punto