After rising as high as 83.48 dollars a barrel on Friday, the price of Brent oil declined due to data showing that demand in the US decreased and ended the day at 80.80 dollars. Prices are also in a downward trend today, decreasing by 0.22 percent compared to the closing as of 09.52 am to 80.62 dollars.
Factors behind the decline:
Decline in oil demand in the US: According to data from the US Energy Information Administration, commercial crude oil stocks in the country increased by 3.5 million barrels last week.
Expectations of interest rate hikes: It is predicted that higher interest rates in the US for a while will reduce oil demand.
Strengthening dollar: The appreciation of the US dollar against other currencies has a downward impact on oil prices.
Investors are watching the Fed:
This week, experts will closely monitor the core personal consumption expenditures data, which is also followed by the US Federal Reserve (Fed) as an inflation indicator. Market players expect the data on the US economy this week to signal the Fed’s next steps. While the uncertainty about when the Fed will start to cut interest rates continues, investors will also carefully monitor the statements of bank officials.
Tensions in the Red Sea pose a risk:
On the other hand, concerns that the ongoing conflicts in the Red Sea will negatively affect the global oil supply limit the downward movement of prices. Iran-backed Houthis in Yemen announced that US and British warplanes bombed the city of Taiz yesterday and targeted an American oil tanker in the Gulf of Aden.
Technical analysis:
In Brent oil, technically, it is stated that the range of 80.87 to 81.11 dollars can be followed as resistance and the range of 80.55 to 79.62 dollars can be followed as support zone.
