The price of a barrel of oil continues to fall

SHAFAQNA TURKEY – The price of a barrel of Brent oil, which rose to $80.49 yesterday, ended the day at $77.17. The price of a barrel of Brent oil increased by 0.8 percent compared to the closing date at 09:25 today and amounted to $77.77. At the same time, West Texas Intermediate (WTI) crude oil found buyers at $72.70 per barrel.

The global imbalance of supply and demand and steps taken to ease restrictions due to Covid-19 in China have had an impact on price increases.

While the epidemic control measures continued to ease after protests against COVID-19 measures in China, the world’s largest oil importer, some cases of quarantine at home have finally been given the green light.

The deluge of news about the smaller-than-expected contraction of the Japanese economy in the third quarter also supported prices higher.

The decline in US commercial stocks of crude oil created a sense of high demand and supported prices. The US Energy Information Administration (EIA) said the country’s commercial crude oil inventories fell by about 5,200,000 barrels last week to 413,900,000 barrels. Market expectations were that stocks would fall by 3,900,000 barrels.

Strategic oil reserves not included in commercial oil reserves decreased by 2 million 100 thousand barrels to 387 million barrels. During this period, US gasoline inventories increased by 5 million 300 thousand barrels and amounted to 219 million 100 thousand barrels.

On the other hand, the Central Bank of Russia said that the new European Union (EU) sanctions and price ceilings on Russian oil are “new economic shocks” that could significantly reduce economic activity in the country.

Technically, the $78.12 to $78.35 range for Brent crude can be seen as resistance, and the $77.52 to $77.15 range as support, it is argued.

WORLD