Brent Oil Price Reaches $83.09 Per Barrel
Oil prices continue to rise due to increased demand in the United States, the world’s largest oil consumer, as well as easing inflation concerns from economic data released in the country.
The US Energy Information Administration reported a decrease in gasoline stocks by approximately 200 thousand barrels last week, reaching 227.8 million barrels. Additionally, commercial crude oil stocks dipped by around 2.5 million barrels, falling to 457 million barrels, surpassing market expectations. This decline in stocks beyond forecasts signals a rise in demand and supports prices upward.
In the US, the Consumer Price Index rose by 0.3 percent on a monthly basis in April, which was below expectations. This news helped ease inflation concerns and contributed to the increase in oil prices.
Meanwhile, China, the largest oil exporter globally, announced plans to issue subsidized bonds worth 1 trillion yuan to support economic growth. This move aims to accelerate the country’s economic recovery and has positively impacted oil prices.
Furthermore, concerns about wildfires in Canada potentially disrupting oil supply as they approach major production hubs are also driving prices higher. The fires, which started in Western Canada over the weekend, continue to expand and have led to the evacuation of thousands of people.
From a technical standpoint, Brent oil is facing resistance between $84.36 and $85.65, while support can be found between $81.63 and $80.34. As various factors continue to impact oil prices, the market remains dynamic and responsive to both domestic and international developments.
