Brent Crude Oil Trades at $72.91 Per Barrel
Oil Prices Rise on Positive Growth in US Services and Production Cuts from Major Oil Producers
Oil prices have seen a rise due to positive growth in the US services sector and expectations that production cuts from major oil producers will limit supply. The US Federal Reserve’s expected quarter-point interest rate increase yesterday has also helped support prices, with signals that there will be no further rate increase after that. This comes after a 9 percent decline in oil prices over the past 3 days.
The OPEC+ group, led by Saudi Arabia and Russia, confirmed at the 48th Joint Ministerial Monitoring Committee Meeting that in addition to the 2 million barrels per day production cut that has continued since October, some countries have decided to make a voluntary cut of approximately 1.6 million barrels per day starting in May. The cut, implemented before the travel season when demand increases, is aimed at increasing concerns about the potential imbalances in the market in the coming period.
Investors are also awaiting the monetary policy decisions of the European Central Bank (ECB) today as well as the statements by ECB President Christine Lagarde after the meeting. Meanwhile, the decrease in the commercial crude oil stocks in the US has added to the perception of high demand, supporting prices.
Technical analysts have noted that the range of $73.64 to $74.10 for Brent oil could serve as a resistance zone, while the range of $72.39 to $71.60 could serve as a support zone.
