Drop in Brent crude oil price per barrel

The price of a barrel of Brent crude is trading at $78.28 in international markets.

After rising to $79.73 on Friday, the price of a barrel of Brent crude closed the day at $78.56. As of 09:57 today, the price of a barrel of Brent crude decreased by 0.36 percent to $78.28 compared to the closing price. At the same time, a barrel of West Texas Intermediate (WTI) crude oil was finding buyers at $73.03.

The resumption of production at the Sharara Oil Field in Libya, a member of the Organization of the Petroleum Exporting Countries (OPEC), was influential in the decline of oil prices.

Sharara, one of the country's largest oil fields, was shut down on January 3 following a raid by protesters. In a video released after the closure of the oil field, the demonstrators expressed their demands for the implementation of a decision to build a refinery in the south, the maintenance of damaged roads, the appointment of southerners to oil companies, and the resolution of fuel shortages in the region.

Libyan Government of National Unity Deputy Prime Minister Ramadan Abu Janah confirmed in a statement to the Free Libya television channel yesterday that the Sharara Oil Field had been reopened after the protesters' demands were met. The oil field, which has a daily production capacity of 340 thousand barrels, accounts for approximately one-third of the country's production.

Expectations that there may be a global oil supply surplus this year also continue to put pressure on prices. In its monthly report, the International Energy Agency (IEA) announced its forecast that global oil supply will increase by approximately 1 million 500 thousand barrels per day to 103 million 500 thousand barrels this year, while global oil demand will reach 103 million barrels per day. It is estimated that if production exceeds global demand, the decline in oil prices will continue.

In the US, the world's largest oil-consuming country, concerns persist that oil production will fall due to cold weather and that major refinery operations in the country could be negatively affected. In North Dakota, the US's largest oil-producing state, oil production has been cut in half as temperatures dropped to 17 degrees below zero. It is estimated that it may take several weeks for production in the region to return to normal levels.

It is stated that technically, the $79.03 to $79.24 range can be monitored as a resistance zone for Brent crude, while the $77.95 to $77.62 range can be monitored as a support zone.

News Source: AA