The barrel price of Brent oil, which rose to $25.85 on Friday, finished the day at $24.68. As of 09.23 today, a barrel of Brent oil was traded at $24.48, with a decrease of 0.81 percent compared to the closing. At the same time, West Texas Intermediate (WTI) crude oil was sold at $21.21 per barrel.
With the appreciation of the US dollar, US President Donald Trump’s tax threat on the imports of some Chinese products is effective in the decrease in prices.
Production cut decision started to be implemented
The production cut decision of OPEC, led by Saudi Arabia, and some non-OPEC crude oil producing countries, led by Russia, began to be officially implemented as of May 1. According to the agreement, these countries will reduce their total crude oil production by 9.7 million barrels per day for 2 months.
Experts state that these production cuts and the desire of some countries to revitalize their economies by reducing measures to combat the new type of coronavirus epidemic are factors restricting the decline in the global oil price.
The number of oil rigs in the US has decreased for 7 weeks in a row
Meanwhile, according to weekly data published by the oil field service company Baker Hughes, the number of oil drilling rigs in the USA decreased by 53 to 325 in the week of April 25-May 1 compared to the previous week. The number of oil rigs in the USA decreased for 7 consecutive weeks, decreasing by a total of 358 during this period.
It is stated that technically, the range between 26.31 and 26.91 dollars in Brent oil can be viewed as resistance, and the range between 23.01 and 22.48 dollars can be viewed as a support zone.
Source: https://www.aa.com.tr/tr/ekonomi/brent-petrolun-varili-24-48-dolar/1827931
