Brent Oil Barrel Price Reaches $89.50
Oil prices fall as US demand weakens and dollar strengthens
The price of Brent oil dropped by 0.70 percent to $89.50 per barrel on Thursday, following data showing weakening demand in the United States, the world’s largest oil consumer. The US Energy Information Administration (EIA) reported an increase in commercial crude oil stocks by approximately 1.4 million barrels, pushing the total stock to 421.1 million barrels, contrary to market expectations of a decrease by 2.6 million barrels. This unexpected increase in stocks contributed to the decline in oil prices.
Furthermore, the appreciation of the US dollar against other currencies also played a role in the decline. The US dollar index rose by 0.27 percent to 106.637, making oil more expensive for foreign currency users and potentially reducing demand.
The ongoing Israeli-Palestinian conflict continues to impact oil prices, with market participants closely monitoring diplomatic efforts to control the situation between Israel and Hamas. There are concerns that the conflict could spread to regions where oil exporters are located, leading to potential supply disruptions.
Technically, analysts suggest that the range between $90.16 and $90.38 in Brent oil can be seen as a resistance level, while the range between $88.84 and $88.40 can be considered a support zone.
Overall, the combination of weakening US demand, a strengthening dollar, and geopolitical tensions has led to a decline in oil prices. Market participants will be closely following developments in the conflict and demand trends to anticipate future price movements.
