The barrel price of Brent oil, which rose to $ 111.59 yesterday, completed the day at $110.78.
The barrel price of Brent oil was 109.36 dollars with a decrease of 1.3 percent compared to the closing with the prestige of 09.25 today. In one-on-one minutes, West Texas type (WTI) crude oil found buyers at $108.87 a barrel.
The decline in prices was influenced by the contraction in oil market supply and the expectations of a recession in the global economy despite the approaching travel period in the USA, as well as the ongoing Covid-19 restrictions in China.
“IT CAN BE A DIFFICULT YEAR”
International Monetary Fund Leader Kristalina Georgieva stated at the World Economic Forum (WEF) held in Davos, Switzerland, that this year will be a troublesome year for the global economy.
Georgieva said, “We think 2022 will be a difficult year. Along with this, commodity price shocks are coming in many countries. The shock I would like to draw your attention to, in particular, is the full price shock last week. Because, Presumably, the feeling that the economy has entered stronger waters. The oil price has fallen, but the food prices are starting to rise. continues,” he said.
While it is expected that the Covid-19 measures will be eased and normalization will begin with the prestige of June 1 in Shanghai, the commercial center of China, the increase in the number of incidents in Beijing has increased the concerns that new restrictions may be applied in the region.
In the metropolis with a population of more than 21 million, measures are being continued due to the panic created by the possibility of spreading, which will require a closure similar to the one in Shanghai.
DEMAND IS EXPECTED TO RISE
On the other hand, the approach of heavy travel period in the USA, which will continue from May 30th Memorial Day to September, increases the expectations of an increase in oil demand and limits the downward movement of prices.
In Brent oil, it is technically stated that the range of 110.02 to 110.48 dollars can be followed as resistance, and the range of 109.24 to 108.92 dollars can be viewed as the mainstay.