The barrel price of Brent oil, which rose to $74.61 yesterday, finished the day at $74.17. The barrel price of Brent oil increased by 0.2 percent compared to the closing time at 09.42, reaching 74.37 dollars. At the same time, West Texas Intermediate (WTI) crude oil was sold at $70.39 per barrel.
Oil prices started to rise following the strong retail sales data announced in the USA yesterday, with expectations of increased economic activity in the world’s largest crude oil consuming country.
According to the data, retail sales increased by 0.4 percent in September compared to the previous month, reaching 714.4 billion dollars. Analysts stated that the increase in retail sales supports the view that the economy maintained its growth rate in the third quarter.
In addition, the number of people applying for unemployment benefits for the first time in the country fell to 241 thousand in the week ending October 12, below market expectations, indicating a softening in the US labor market since the peak after the epidemic.
Data showing increased economic activity in the USA supported the rise in oil prices by whetting the demand appetite of market players.
On the other hand, while it is still considered certain that the US Federal Reserve (Fed) will reduce the policy rate by 25 basis points next month, the bank is expected to make a total reduction of 50 basis points in the two meetings to be held until the end of the year.
It is thought that low interest rates will increase the demand for oil by causing the US dollar to lose value against other currencies. The US Dollar Index decreased by 0.22 percent to 103.60 at 09.38 (06.38 GMT) compared to the previous trading session.
In addition, the Chinese government’s announcement of some gradual policy steps to revive the real estate sector, which has been in decline for the last 3 years, also had an impact on oil prices.
Minister of Housing and Urban-Rural Development Ni Hong stated at a press conference in Beijing that credit support for construction projects that meet the prerequisites will be increased to 560 billion dollars by the end of the year.
Pointing out that 310 billion dollars have been transferred so far to real estate and housing projects that meet the prerequisites, called the “white list”, Minister Ni said that the renovation projects of urban-village and dilapidated buildings will be accelerated, 1 million additional houses will be renewed and compensation will be provided to the citizens living in these places. .
Steps taken to revitalize the real estate sector and housing market, which negatively affect economic growth in China, the world’s largest oil importing country, eliminate concerns about demand and support prices upwards.
It is stated that technically, in Brent oil, $ 80.43 can be watched as resistance and $ 70.04 can be watched as support.