Brent crude oil price per barrel remains flat

After rising to as high as $79.40 yesterday, the price of a barrel of Brent crude closed the day at $78.29.

As of 09:20 today, the price of a barrel of Brent crude decreased by 0.69 percent compared to the closing price, reaching $77.75. At the same time, West Texas Intermediate (WTI) crude oil was trading at $71.97 per barrel.

The decline in prices was driven by mixed signals from data out of China and the strengthening of the US dollar.

According to data released today in China, the world's second-largest oil consumer, the country's economy grew by 5.2 percent on an annual basis, yet fell short of expectations, signaling that deflationary pressures persist in the country.

The growth rate did, however, exceed the Chinese government's target of "around 5 percent" for 2023. Industrial production in the country exceeded forecasts in December, rising by 6.8 percent monthly, while the unemployment rate rose to 5.1 percent.

Another factor exerting downward pressure on oil prices was the appreciation of the US dollar against other currencies.

As concerns grow that the US Federal Reserve (Fed) may begin interest rate cuts later than anticipated, the dollar has gained strength against other currencies, with the dollar index reaching a one-month high of 103.5.

A strong US dollar makes dollar-indexed oil more expensive for buyers using other currencies, leading to a decrease in demand and a decline in prices.

On the other hand, rising tensions in the Middle East continue to impact prices.

Tensions in the Red Sea are fueling concerns that a potential crisis in the global supply chain could negatively affect energy shipments, thereby limiting the decline in prices.

Technically, it is stated that the $77.99 to $78.40 range can be monitored as resistance for Brent crude, while the $77.58 to $77.17 range can be viewed as a support zone.