The barrel price of Brent oil, which completed the day at $86.17 level yesterday, became $86.05 with a decrease of 0.13 percent as of 09:57 today. At the same time, West Texas Intermediate (WTI) crude oil found buyers at $82.80 a barrel.
The decline in prices was driven by the slowdown in economic growth, raising concerns about global oil demand, and negative economic indicators from China, the world’s largest oil importer.
The continuing decline in producer prices and the stagnation in consumer prices in China increased the concerns about the risk of deflation. According to the data of China’s National Bureau of Statistics, the Producer Price Index decreased by 4.4 percent and the Consumer Price Index decreased by 0.3 percent in July compared to the same period last year.
While the downward trend in producer prices continued for 9 months, consumer prices decreased for the first time since February 2021.
China’s General Administration of Customs announced yesterday that oil imports in the country decreased by 18.8 percent compared to the previous month and amounted to 10.29 million barrels per day.
The negative economic data in question indicated that the demand in the country slowed down during the travel period, which is expected to be intense, and put oil prices down.
In addition, the international credit rating agency Moody’s downgraded 10 small and medium-sized US banks and examined 6 banks, including Bank of New York Mellon, US Bancorp, State Street and Truist Financial, for possible downgrades. raised concerns about his health.
While investors focus on the statements of the US Federal Reserve (Fed) officials, Philadelphia Fed President Patrick Harker said that they do not want to go too far in tightening, and that they will probably start lowering interest rates next year.
On the other hand, the American Petroleum Institute’s announcement that crude oil supply in the USA increased by about 4 million barrels last week accelerated the downward trend in prices.
The U.S. Energy Information Administration will release official oil stock data today. In case of an increase in stocks, the decrease in oil prices is expected to continue.
It is stated that technically, the range of 86.13 to 86.24 dollars in Brent oil can be followed as resistance and the range of 85.93 to 85.84 dollars as a support zone.