Drop in Brent crude oil price per barrel

After rising to $82.57 yesterday, the highest level in the last two months, the price of a barrel of Brent crude closed the day at $82.43.

As of 09:45 today, the price of a barrel of Brent crude fell 0.43 percent from the closing price to $82.04. At the same time, West Texas Intermediate (WTI) crude oil was trading at $76.86 per barrel.

The decline in prices was driven by profit-taking from investors looking to capitalize on the price increases, which were fueled by data showing rising oil demand in the U.S.—the world's largest oil consumer—and signs of economic recovery in China.

According to official inventory data released Wednesday by the U.S. Energy Information Administration (EIA), commercial crude oil inventories in the country fell by approximately 9 million 200 thousand barrels last week. The decline, which exceeded expectations, signaled strong demand in the U.S. and provided upward support for oil prices.

Furthermore, while inflation in the U.S. is slowing, positive signals from economic activity have increased the likelihood of a "soft landing" for the economy, while market pricing has strengthened expectations that the U.S. Federal Reserve (Fed) could begin interest rate cuts in March.

In China, the Central Bank lowered the reserve requirement ratios for banks and credit institutions. It is estimated that this step could reduce deflationary pressure in the country, boost risk appetite, and positively impact oil demand.

Technically, it is stated that the $82.49 to $82.70 range can be monitored as resistance for Brent crude, while the $81.80 to $81.59 range can be monitored as a support zone.

News Source: AA