Geopolitical Developments and Supply Disruptions Impact Brent Crude Prices

While the barrel price of Brent crude trades at $104.70, a decision for a ceasefire regarding energy infrastructure between Russia and Ukraine, along with production cuts in the US Gulf of Mexico, is determining the direction of the markets.

Latest Situation in Oil Prices

Rising to as high as $105.09 on Friday, the futures barrel price of Brent crude completed the day at $104.72, after which the December futures barrel price decreased by 0.01% to $104.70.

At the same minutes, the November futures barrel price of West Texas Intermediate crude was determined at the $91.46 level.

Energy Ceasefire Between Russia and Ukraine

US President Donald Trump announced in a post on his social media account that the ceasefire covering energy infrastructure between Russia and Ukraine has entered into force immediately.

Despite the ongoing war, the agreement of the two countries not to attack each other's energy facilities has alleviated concerns over supply disruptions.

Statements and Conditions from Zelenskyy

Ukrainian President Volodymyr Zelenskyy proposed a 60-day full ceasefire with Russia in order for elections to be held.

Zelenskyy stated that if Russia halts its attacks on energy infrastructure, the Kyiv administration could also abandon targeting Russian refineries.

Production Disruptions in the Gulf of Mexico

Gradual restart efforts continue for the oil and natural gas production that was halted due to Hurricane Isaias affecting the US Gulf of Mexico.

Approximately 1.17 million barrels of production, corresponding to 57.54% of the daily oil production in the region, remain offline.

Technical Levels and Expectations

While the disruption in natural gas production hovers around 49.11% at approximately 1.05 billion cubic feet, bp and Shell are working to reopen their production facilities.

It is stated that technically for Brent crude, the $106.36 level can be monitored as resistance, and the $100.70 level as the support zone.