Brent Oil Dropped Below $87 a Barrel

Brent oil dropped below $87 a barrel on January 21. Today, Brent oil is priced at $86.94 a barrel in global markets.

Brent oil, which went up to $ 89.50 yesterday, closed the day at $ 88.38. Today, at 09:45, the barrel of Brent oil, which decreased by 1.63% compared to the closing, is trading at $ 86.94.

The increase in the crude oil and gasoline stocks of the USA, the world’s largest oil consumer, played a role in the decline in oil prices.

The country’s commercial crude oil inventories increased by 500,000 barrels last week, contrary to expectations, according to data from the US Energy Information Administration (EIA). The market expectation was that inventories would decrease by 1 million 367 thousand barrels.

In the said period, US gasoline stocks increased by 5 million 900 thousand barrels, reaching the highest level since February 2021. Despite the ongoing demand recovery, short-term supply constraints restrain the downward movement of prices.

In its latest report, the International Energy Agency (IEA) revised its forecast for the increase in global oil demand for this year upwards, as countries took lighter measures in the Covid-19 outbreak.

It was stated that the range of $87.27 to $87.85 can be viewed as resistance, and the range of $86.69 to 86.11 as support in Brent oil.