Oil prices have dropped! – Last minute Turkey and world news

SHAFAQNA TURKEY – The price of a barrel of Brent oil, which rose to $86.42 yesterday, ended the day at $85.58. The price of a barrel of Brent oil fell by 1.09 percent compared to the closing date at 09:33 today and amounted to $84.65. At the same time, West Texas crude oil (WTI) found buyers at $78.12 per barrel.

The decline in prices was caused by increased concerns about demand after the publication of data on US crude oil inventories and inflation.

The American Petroleum Institute reported that the country’s crude oil inventories are expected to increase by about 10 million 507 thousand barrels last week compared to the previous week. Market expectations were that inventories would fall by 321,000 barrels.

The outlook for stockpiles to rise on perceptions of weak demand in the world’s largest oil consumer is holding prices down.

Official inventory data from the US Energy Information Administration will be released today.

Expectations that the US might raise interest rates also led to a recession and fears about demand, which contributed to lower prices.

According to data released yesterday in the US, the annual increase in the consumer price index (CPI), which amounted to 6.5 percent in December, fell to 6.4 percent in January. The CPI also rose 0.5 percent m/m in January. Despite the ongoing slowdown in inflation rates, it should be noted that inflation remained above expectations.

FEED OFFICIALS SUPPORT “HOLE” TONE

US Federal Reserve (Fed) officials remained hawkish in their assessments after the release of the data.

Philadelphia Fed President Patrick Harker said that inflation is not declining quickly and that the 25 basis point interest rate hike should be maintained. New York Fed President John Williams said it could take several years for inflation to return to its 2 percent target, adding that while it has been moderate in recent months, it is still high. Dallas Fed President Lori Logan said the Fed should now be ready to raise interest rates for longer than expected.

On the other hand, an upward revision of the Organization of the Petroleum Exporting Countries (OPEC) forecast for an increase in global oil demand this year eased concerns about demand and limited price declines.

According to OPEC’s monthly oil market report released yesterday, global oil demand is expected to increase by 2,320,000 barrels per day compared to last year and reach about 101,870,000 barrels this year.

The expected economic recovery in China, where restrictions on the COVID-19 outbreak have been lifted, is believed to contribute to this increase.

Today the markets will follow the report on the oil market of the International Energy Agency.

It is argued that technically the $84.86 to $85.03 range for Brent oil can be seen as resistance, and the $84.69 to $84.52 range as support.