After rising to $89.32 yesterday, the price of a barrel of Brent crude oil closed the day at $88.92. As of 10:05 a.m. today, the price of a barrel of Brent crude oil was $89.12, an increase of 0.22 percent from the closing price. At the same time, a barrel of West Texas Intermediate (WTI) crude oil was trading at $85.25.
The rise in prices was driven by strong demand forecasts in the U.S. and concerns regarding global oil supply. The American Petroleum Institute estimated that U.S. commercial crude oil inventories fell by 2 million 286 thousand barrels last week compared to the previous week, slightly exceeding expectations. Market expectations were for a decrease of 2 million barrels in inventories.
The projected decline in commercial crude oil inventories in the U.S., the world's largest oil consumer, strengthened the perception that demand in the country remains robust, providing upward support for oil prices.
The U.S. Energy Information Administration (EIA) will release official oil inventory data today. If the data points to a decline in inventories, oil prices are expected to continue their upward trend.
Having tested its highest level in the last 5 months due to geopolitical tensions and supply concerns, oil prices continue to find support as the possibility of a further decline in Russia's oil exports gains strength in the markets.
Concerns that there could be further supply disruptions in the Middle East, where the majority of global oil reserves are located, following the attacks on Iran's embassy in Damascus, are also impacting prices.
On the other hand, the OPEC+ group, consisting of the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producer countries, is not expected to make any recommendations regarding future production policy at its meeting today, which will evaluate market conditions and the compliance of member countries with current production policies.
Technically, it is noted that the $89.21 to $89.49 range can be monitored as a resistance zone for Brent crude, while the $88.93 to $88.65 range can be monitored as a support zone.
News Source: AA
