The price of a barrel of Brent oil, which rose to $74.43 yesterday, closed the day at $73.21. As of 09:36, the price of a barrel of Brent oil increased by 1.1 percent compared to the closing price, reaching $74.01. At the same time, a barrel of West Texas Intermediate (WTI) crude oil found buyers at $71.25.
Uncertainties about the magnitude of the steps the US Federal Reserve (Fed) will take in the coming period and concerns that ongoing tensions in the Middle East will cause disruptions in global supply were influential in the increase in oil prices.
Minneapolis Fed President Neel Kashkari, in an article he wrote about why he supports the bank’s interest rate cut decision last week, stated that he is in favor of reducing interest rates by another half point by the end of the year.
While the expectation that the Fed will make a 75 basis point cut by the end of the year remains strong, it is anticipated that interest rates will be cut by 25 basis points in November and 50 basis points in December. It is thought that these expectations will cause the US dollar to lose value against other currencies and increase oil demand.
Last week, the bank lowered its policy rate by 50 basis points for the first time in four years, to the range of 4.75-5.00 percent.
In addition, ongoing conflicts in the Middle East, where most of the global oil reserves are located, continue to support the upward movement of oil prices.
Hezbollah announced that it carried out six missile attacks targeting two military airports, a base and an explosives factory in northern Israel.
While it was stated that the attacks were carried out “to support the Palestinian people in the Gaza Strip, their brave and honorable resistance and to defend the people of Lebanon,” it was the first time that the airport, which is 30 kilometers from the Lebanese border, was hit by Hezbollah.
It is stated that technically, the range between $74.56 and $75.50 can be monitored as the resistance zone for Brent oil, while the range between $72.55 and $71.48 can be monitored as the support zone.
