The barrel price of Brent oil, which rose to $26.23 yesterday, finished the day at $19.03. As of 09.20 today, a barrel of Brent oil was traded at $16.73, a decrease of 12.1 percent compared to the closing. At the same time, West Texas Intermediate (WTI) crude oil was sold at $7.37 a barrel.
While oil demand continues to remain weak worldwide due to the new type of coronavirus (Covid-19) epidemic, the increasing supply surplus and the rapid increase in oil stocks strengthen the pressure on prices.
In its statement yesterday, the International Energy Agency (IEA) suggested that producers immediately implement the cut decision and make further cuts in order to eliminate the volatility in oil prices and balance the markets.
While IEA stated that global oil demand will decrease by 29 million barrels per day in this month, which is described as “Black April”, it underlined that there is a large excess supply in the market and that this excess poses a threat to oil stock capacity being filled in the coming weeks.
In addition, it was stated that the production cuts to be implemented by the Organization of Petroleum Exporters (OPEC) and some non-OPEC oil producing countries as of May 1 will not be sufficient to quickly balance the oil market.
It is stated that technically, for Brent oil, the range between 16.79 and 17.56 dollars can be viewed as resistance, and the range between 16.02 and 15.25 dollars can be viewed as a support zone.
Source: https://www.aa.com.tr/tr/ekonomi/brent-petrolun-varili-16-73-dolar/1813866
