The barrel price of Brent oil, which completed the day at $83.21 yesterday, decreased by 0.40 percent compared to the closing as of 09:24 today and became $82.88. In the same minutes, West Texas type (WTI) crude oil found buyers at $78.52 a barrel.
Weak economic data from some countries and uncertainties in the US interest rate policy were effective in the decline in prices. The decline in global oil demand and concerns about an increase in oil supply support the decline in prices.
US Federal Reserve (Fed) officials and representatives of the European Central Bank, the Bank of England and the Bank of Japan will meet in the US state of Wyoming for their annual meeting this week. Investors are waiting for Federal Reserve Chairman Jerome Powell’s speech tomorrow for clues on US interest rates.
Data regarding the weakening of global economic activity continue to put pressure on oil prices. Japan reported that its factory activity shrank for the third time in a row in August. Business activity in the euro area also fell more than expected. The UK economy is expected to shrink this quarter. Business activity in the US approached the recession point in August and growth was at its weakest level since February.
On the other hand, the US Energy Information Administration announced that oil stocks in the country decreased by 6 million 100 thousand barrels last week to 433 million 500 thousand barrels. The expectation was that stocks would decrease by 2 million 418 thousand barrels. The drop above expectations limited the decline in oil prices, pointing to the increase in demand in the USA, the world’s largest oil consumer.
It is stated that technically, the range of $83.29 to $83.35 in Brent oil can be viewed as resistance, and the range of $82.50 to $82.40 as support.