The barrel price of Brent oil, which rose to $72.55 yesterday, finished the day at $71.83. The barrel price of Brent oil increased by approximately 0.8 percent compared to the closing time at 10.20 today, reaching 72.38 dollars. At the same time, West Texas Intermediate (WTI) crude oil was sold at $68.67 per barrel.
Oil prices have risen on expectations that the new US administration may soften its steps affecting international trade and that market players will implement a looser monetary policy next year.
Concerns that the tariffs planned to be implemented by the re-elected US President Donald Trump will significantly increase prices for US consumers and create cost pressure on companies that rely on imports of inputs, following Chinese President Xi Jinping’s statements that he wants to expand cooperation with the US decreased.
In his statement yesterday, Xi stated that his country wants to continue the dialogue with the USA, deepen cooperation and manage its differences, and develop bilateral relations in a healthy, stable and sustainable direction, and said, “Tariff wars, trade and science and technology wars are contrary to the trend of history and the economy, there are no winners in them.” he said.
These statements increased expectations that Trump would have an impact on his plan to impose an additional 10 percent customs duty on products coming from China and supported prices upwards by alleviating concerns that demand would decrease in the world’s largest oil-consuming country.
In addition, strong expectations that the US Federal Reserve (Fed) will reduce interest rates continue to have an impact on oil prices.
While it is predicted that the Fed will reduce interest rates by 25 basis points at the last monetary policy meeting of the year with an 86 percent probability, it is estimated that signals regarding the speed of interest rate cuts next year will gradually influence the direction of asset prices.
In addition, following the statements that a looser monetary policy will be followed in China in order to stimulate economic growth, predictions that oil demand will increase in the country, which is the world’s largest crude oil importer, also support price increases.
At the meeting held by the Political Bureau of the Central Committee of the Communist Party of China (CCP) under the chairmanship of President and Party General Secretary Xi Jinping to discuss and analyze 2025 economic policies, a call was made to “follow a more active budget and a moderately loose monetary policy in 2025”.
In the statement, it was noted that the economic and social development goals are expected to be achieved in 2024, and it was emphasized that consumption should be actively encouraged in 2025, the efficiency of investments should be improved and domestic demand should be expanded on all fronts.
It is stated that technically $ 74.30 can be watched as resistance and $ 70.65 as support for Brent oil.
