The barrel price of Brent oil, which rose to $ 84.83 yesterday, completed the day at $ 83.12. As of 09:20, the price of Brent oil per barrel decreased by 0.92 percent compared to the closing date and became 82.35 dollars. In the same minutes, West Texas type (WTI) crude oil found buyers at $78.47 a barrel.
The strengthening of the US dollar with the expectations of interest rate hikes and the fact that the latest economic data from the US and China did not meet the expectations for a recovery in demand were effective in the decline in prices.
The US Federal Reserve’s “Beige Book Report” revealed that general economic activity in the country has changed “very little” in recent weeks, while growth expectations have remained largely the same.
The appreciation of the US dollar against other currencies also made dollar-denominated oil more expensive for buyers using other currencies, resulting in reduced purchases and lower prices.
Despite the fact that the gross domestic product in China was above expectations, industrial production and fixed asset investments fell short of the forecasts, supporting concerns about the demand outlook and suppressing prices.
On the other hand, the decline in the commercial crude oil stocks of the USA creates the perception that the demand is high in the country, thus limiting the downward movement in prices.
The U.S. Energy Information Administration announced that commercial crude oil stocks in the country decreased by about 4 million 600 thousand barrels last week to 466 million barrels. The market expectation was that inventories would decrease by 2 million 464 thousand barrels.
Strategic crude oil stocks, which are not included in commercial crude oil stocks, decreased by 1 million 600 thousand barrels to 368 million barrels.
It is stated that technically, the range of $84.36 to $85.94 in Brent oil can be viewed as resistance, and the range of $81.67 to $80.56 as support.