The barrel price of Brent oil, which rose to $ 82.88 yesterday, completed the day at $ 80.60. As of 09:01, the barrel price of Brent oil increased by 0.8 percent compared to the closing date and became 81.24 dollars. At the same time, West Texas Intermediate (WTI) crude oil found buyers at $77.77 a barrel.
The rise in prices was due to the perception that the demand in the world’s largest oil consumer was high, as the US’s forecast of a decline in crude oil stocks.
The American Petroleum Institute announced that the country’s crude oil stocks were forecast to decrease by 6 million 83 thousand barrels last week compared to the previous week. The market expectation was that there would be a decrease of 1 million 667 thousand barrels.
Official stock data from the U.S. Energy Information Administration will be released today.
Concerns about the ongoing economic slowdown and expectations of further rate hikes that could dampen fuel demand growth continue to weigh on prices.
Expectation of interest rate hike pressures prices downwards
In the USA, the Conference Board Consumer Confidence Index decreased by 2.7 points on a monthly basis to 101.3 in April, the lowest level in 9 months. The aforementioned data supported the expectations of economic recession and negative demand outlook, giving rise to concerns of a sharper-than-expected slowdown in consumer confidence.
On the other hand, expectations that central banks will increase interest rates in the UK and Europe, along with the USA, continue to put downward pressure on prices.
It is stated that technically, the range of 81.34 to 81.44 dollars in Brent oil can be followed as a resistance and the range of 81.05 to 80.86 dollars as a support zone.