The barrel price of Brent oil, which rose to $72.51 yesterday and closed the day at $71.82, increased by 0.2 percent to $71.96 as of 09:22 compared to the closing price. At the same time, a barrel of West Texas Intermediate (WTI) crude oil found buyers at $68.53.
Oil prices rose as Hurricane Francine disrupted oil production in the Gulf of Mexico.
According to the National Weather Service (NWS), the hurricane hit southern Louisiana at Category 2 intensity, bringing winds of up to 100 mph (160 km/h).
Describing Hurricane Francine as “potentially life-threatening,” the NWS warned that the hurricane would bring heavy rainfall and winds, as well as localized flooding.
According to the U.S. Bureau of Safety and Environmental Enforcement’s statement yesterday, an estimated 41.7 percent of current oil production and 53.3 percent of current natural gas production in the Gulf of Mexico are disrupted.
In addition, the International Energy Agency’s (IEA) report that the Organization of the Petroleum Exporting Countries (OPEC) has decreased crude oil production is feeding the supply concerns of market players and supporting the upward movement of prices.
According to the IEA’s oil market report for August, the OPEC group’s crude oil production decreased by 70 thousand barrels per day compared to the previous month, reaching 27 million 370 thousand barrels.
In addition, the decision of the OPEC+ group, which consists of OPEC and some non-OPEC producer countries, to postpone the production increase planned to start in October, following the decline in prices, continues to have an increasing effect on oil prices.
On the other hand, data indicating that global oil production is increasing and US commercial crude oil stocks are rising, limiting the upward movement of prices.
In a report published yesterday by the IEA, it was reported that global oil production increased by approximately 80 thousand barrels per day in August compared to the previous month, reaching 103 million 530 thousand barrels.
This data is putting pressure on prices by increasing expectations that global oil supplies will not be disrupted.
However, the US Energy Information Administration (EIA) announced that commercial crude oil stocks in the country increased by approximately 800 thousand barrels last week to 419 million 100 thousand barrels.
Data indicating that demand is slowing in the world’s largest oil-consuming country supports the downward movement of prices.
It is stated that technically, the resistance range for Brent oil is between $73.03 and $74.09, while the support range is between $70.75 and $69.53.
