Brent Crude Oil Price Reaches $76.81 per Barrel
Oil Prices Continue to Decline Due to Global Economic Slowdown and Decrease in Demand
The global economic slowdown and a decrease in demand have resulted in a decline in oil prices, according to recent reports. The increase in gasoline stocks in the USA has created a perception that demand is low and has suppressed prices, despite expectations that demand will increase before the summer travel season.
Gasoline stocks in the world’s largest oil consumer rose by 2 million 700 thousand barrels last week to 218 million 800 thousand barrels, according to data from the US Energy Information Administration. In addition, China, the world’s largest oil importer, recorded a decrease in exports and imports in May, which is viewed as a new sign of fragility in the economic recovery.
One factor contributing to the decrease in oil prices is the uncertainty surrounding the monetary policies of central banks, which is reducing the risk appetite in the markets. The central banks around the world have made decisions contrary to expectations, and projections for the Fed’s meeting next week have become uncertain once again.
After the Reserve Bank of Australia raised interest rates by 25 basis points yesterday, contrary to market expectations, the Bank of Canada also increased its policy rate by 25 basis points to 4.75%, the highest level in 22 years. As a result, predictions that the Fed might raise interest rates by 25 basis points in the money markets next week rose to 34 percent, while the signals from the inflation data to be announced before the meeting increased even more.
Technically, the range of 77.02 to 77.17 dollars in Brent oil can be followed as a resistance, and the range of 76.72 to 76.57 dollars as a support zone. The decline in oil prices is expected to continue until more certain economic conditions emerge.
