What is the price of a barrel of Brent crude? (January 18, 2024)

The price of a barrel of Brent crude reached $78.18.

After rising to $78.19 yesterday, the price of a barrel of Brent crude closed the day at $77.88. As of 09:05 today, the price of a barrel of Brent crude was $78.18, an increase of 0.39 percent compared to the closing price. At the same time, a barrel of West Texas Intermediate (WTI) crude oil was finding buyers at $72.96.

Oil prices have risen due to expectations of an increase in global demand this year and next, a decline in production in the US due to the impact of cold weather, and rising geopolitical tensions in the Middle East.

According to a report published yesterday by the Organization of the Petroleum Exporting Countries (OPEC), global oil demand is expected to rise by 2.2 million barrels to 104.4 million barrels this year compared to last year. It is projected that capacity increases and petrochemical margins, particularly in China and countries in the Middle East, will contribute to the growth in oil demand. The rise in demand is also expected to be driven by increases in air and road transportation, as well as industrial, construction, and agricultural activities.

Demand is expected to grow by 1.8 million barrels per day in 2025, reaching 106.2 million barrels per day. The forecast that global oil demand will increase is supporting prices on the upside.

Concerns persist in the US, the world's largest oil-consuming country, that oil production could be limited and major refinery operations in the country could be negatively affected due to cold weather. In North Dakota, the US's largest oil-producing state, oil production has fallen by an average of 700 thousand barrels per day as temperatures dropped below zero. Following this decline, production in the region has fallen to less than half of normal levels.

Rising tensions in the Middle East, which holds rich oil resources, continue to impact oil prices. The US announced yesterday that it had carried out new strikes against missile launchers allegedly used by the Iran-backed Houthis in Yemen. Commenting on the matter, CENTCOM Commander General Michael Erik Kurilla said, "The actions of the Iranian-backed Houthi terrorists continue to endanger international mariners and disrupt commercial shipping routes in the Southern Red Sea and adjacent waterways."

The depreciation of the US dollar against other currencies helped oil prices rise. The US dollar index, which measures the value of the US dollar against other currencies, fell 0.19 percent to 103.014. A weaker dollar is expected to increase demand by making oil cheaper for those using other currencies.

Meanwhile, experts are awaiting official crude oil inventory data to be released by the US Energy Information Administration later today. Yesterday, the American Petroleum Institute announced that crude oil inventories had increased by 483 thousand barrels. The increase in inventories suggests a decline in oil demand in the country, which limits the upward movement of prices.

Technically, it is stated that the $79.21 to $80.23 range can be monitored as a resistance zone for Brent crude, while the $76.85 to $75.16 range can be monitored as a support zone.