Oil Prices on a Downward Trend
While the barrel price of Brent crude moves around the 108 dollar level, US political developments, interest rate expectations, and supply factors are influencing the markets.
The barrel price of Brent crude showed a downward trend and is trading around the 108 dollar level, while WTI crude oil was determined at 104.71 dollars. Political decisions and economic expectations play a role in this volatility in global markets.
Current Levels of Oil Prices
The futures barrel price of Brent crude, which rose up to 109.45 dollars yesterday and completed the day at 108.75 dollars, decreased by 0.6 percent to 108.06 dollars. At the same minutes, the October futures barrel price of West Texas Intermediate crude was also determined as 104.71 dollars.
US Decision on Iran and Its Effects
The US House of Representatives' approval of the bill providing for the withdrawal of American forces from conflicts with Iran supports expectations that tensions between Washington and Tehran could ease, creating downward pressure on oil prices.
Fed's Interest Rate Expectations
The expectation that the Fed, which kept its policy rate constant in the 3.50-3.75 percent range at its July meeting, will go for a 25 basis point interest rate hike in its decision to be announced on September 16 is gaining weight in the markets and may limit demand.
Russia-Ukraine Energy Initiatives
US President Donald Trump's initiatives regarding the cessation of mutual attacks on energy infrastructure between Russia and Ukraine contribute to the alleviation of concerns regarding global energy supply.
Pipeline Disruption in Saudi Arabia
News flow indicating that supply disruptions are reflected in shipments following the closure of Saudi Arabia's East-West Oil Pipeline after the September 10 attacks is among the factors limiting the fall in prices.