What is the price of a barrel of Brent crude?

After rising to as high as $88.22 yesterday, the price of a barrel of Brent crude closed the day at $87.2. As of 09:17 today, the price of a barrel of Brent crude was $87.02, a decrease of 0.21 percent from the closing price. At the same time, a barrel of West Texas Intermediate (WTI) crude was finding buyers at $82.44.

The decline in prices was driven by ceasefire negotiations between Israel and Hamas, which eased supply concerns.

It was reported that a new ceasefire and mutual prisoner exchange agreement proposal, prepared with the mediation of Egypt and Qatar, was presented to Hamas on April 26, and that a delegation from Hamas traveled to Cairo yesterday to discuss the ceasefire proposal.

Regarding the ceasefire agreement process, the Egyptian press reported that the Hamas delegation had left Cairo and that Egypt would provide a written response to the ceasefire agreement proposal in the Gaza Strip.

The possibility of a ceasefire in the Middle East, where major oil producers and trade routes are located, is reducing supply concerns and supporting the downward movement of oil prices.

On the other hand, uncertainties regarding the US Federal Reserve's (Fed) interest rate decision in global markets are also affecting prices by causing demand concerns.

As concerns grow that the Fed will keep interest rates at high levels for a longer period, markets are closely following the Fed's interest rate decision to be announced tomorrow, the subsequent forward guidance from Fed Chair Jerome Powell, and a busy data agenda, primarily the employment report data this week.

While it is considered certain that the Fed will keep interest rates unchanged tomorrow according to pricing in money markets, the probability of starting interest rate cuts in June is 11 percent, 30 percent in July, and 58 percent in September.

High interest rates cause the US dollar to strengthen against other currencies, making oil more expensive for countries using other currencies. This situation reduces investors' appetite for oil demand, putting downward pressure on prices.

Experts state that keeping interest rates at high levels for a longer period could create some risks for the oil demand outlook.

Technically, it is noted that the $88.04 to $89.3 range can be monitored as resistance for Brent crude, while the $86.78 to $85.52 range can be monitored as the support zone.

News Source: 12punto