Brent crude starts the day with a decline

The price of a barrel of Brent crude rose to 81.90 dollars yesterday and finished the day at 81.63 dollars. As of 09:53 today, the price of a barrel of Brent crude was 81.53 dollars, a 0.12 percent decrease from the previous close. At the same time, West Texas Intermediate (WTI) crude oil was trading at 76.21 dollars per barrel.

Oil prices fell due to the impact of data suggesting slowing demand in the US and China, the world's largest oil-consuming countries.

Data showing that oil inventories in the US, the world's largest oil consumer, grew more than expected signaled a drop in demand in the country, putting downward pressure on prices. The US Energy Information Administration (EIA) reported that commercial crude oil inventories in the country increased by approximately 5 million 500 thousand barrels last week. Market expectations were for an increase of 674 thousand barrels.

Uncertainties regarding the monetary policy decisions to be taken by the US Federal Reserve (Fed) this year are also affecting prices. Richmond Fed President Thomas Barkin stated in his remarks yesterday that the Fed's interest rate cut decision might take some time, while expressing that future inflation data is likely to be positive.

Economic growth in China, the world's second-largest economy, falling short of expectations is also supporting the decline in prices.

On the other hand, concerns that the ongoing tensions in the Middle East and the Red Sea, where most oil resources are located, will negatively affect oil shipments are limiting the decline in prices.

It is noted that for Brent crude, the 82.67 to 85.54 dollar range can be technically monitored as a resistance zone, while the 79.80 to 76.93 dollar range can be monitored as a support zone during the day.

News Source: AA