The barrel price of Brent oil, which completed Friday at $ 88.55, became $ 88.45 with a decrease of 0.11 percent as of 09:41 today. At the same time, West Texas type (WTI) crude oil found buyers at $85.53 a barrel.
Brent oil, which saw the highest level since November last year, rising to $ 88.99 on Friday, due to the concerns that Saudi Arabia and Russia will continue the supply cuts in October, started the day with a partial decrease. The profit-oriented sales of investors who wanted to benefit from high prices were effective in the said decrease.
Russian Deputy Prime Minister Aleksandr Novak announced on Thursday that the OPEC+ group is preparing to conclude a new supply cut agreement. Details of the cut are expected to be announced during the week.
Reducing its oil exports by 500 thousand barrels per day in August, Russia announced that it would continue to voluntarily reduce its oil exports, and accordingly, it would cut 300 thousand barrels a day in oil supply in September.
Saudi Arabia, on the other hand, extended the duration of the 1 million barrels per day cut, which it started in July and decided to continue in August, to cover the month of September.
On the other hand, the fact that the data on the labor market in the USA, the world’s largest oil consumer, strengthens the predictions that the Fed will not raise interest rates for the rest of the year, supports the rise in prices.
It is argued that the Fed may pause the rate hike in September and October.
According to data released by the US Department of Labor on Friday, non-farm employment in the country increased by 187 thousand in August, more than expected, while the unemployment rate rose to 3.8 percent, the highest level since February 2022.
Analysts argue that if these data are supported by the positive news flow pointing to a slowdown in inflation, the Fed may pause the rate hike in September and October.
In addition, decreasing concerns about the economy of China, the world’s largest oil importer, also contributed to the rise in prices.
According to the data released in the country on Friday, while the Caixin manufacturing industry PMI surpassed expectations with 51, increased confidence in economic activity, the People’s Bank of China (PBoC) announced that it would cut reserve requirements to revive the economy, and increases were observed under the leadership of the banking sector.
The economic recovery is expected to remain fragile, continuing the pressure on policymakers to offer more stimulus.
It is stated that technically, the range of 88.78 to 88.98 dollars in Brent oil can be followed as resistance and the range of 88.30 to 88.10 dollars as a support zone.