Uncertainty over 'tariffs' in oil prices
A barrel of Brent oil is traded at $66.32 in international markets.
The barrel price of Brent oil, which rose to $67.07 yesterday, closed the day at $66.46.
The price of a barrel of Brent oil decreased by 0.2 percent compared to the closing price at 09:00 today, reaching $66.32. At the same time, a barrel of West Texas Intermediate (WTI) crude oil found buyers at $64.26.
REASONS FOR THE DECLINE IN PRICESThe decline in oil prices was driven by the expectation that the OPEC+ group, which consists of the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producer countries, would make a decision to increase production in August, as well as concerns that possible increases in customs duties in the US would trigger an economic slowdown in the world's largest oil consumer country.
OPEC+ PRODUCTION INCREASE EXPECTATIONThe OPEC+ group is expected to increase production by 411 thousand barrels per day.
Experts say that the increase in production will bring the total increase planned for this year to 1.78 million barrels, which is approximately 1.5 percent of global demand. The OPEC+ member countries of eight, Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman, are expected to determine the amount of production at their meeting on July 6.
These expectations ease market players' concerns about supply, putting downward pressure on prices.
US CUSTOMS TARIFF DEVELOPMENTSIn addition, the news flow that the US administration's 90-day tariff postponement period will expire next week also has an impact on prices.
U.S. Treasury Secretary Scott Bessent told Bloomberg on Monday that if some countries are unable to reach a trade agreement because of their "stubbornness," tariffs could revert to the levels announced on April 2.
Bessent pointed out that the situation regarding whether the tariff postponement period will change will depend on US President Donald Trump, and said, "There are countries negotiating in good faith, but countries should be aware that if we cannot reach an agreement because of their stubbornness, we could go back to April 2 levels. I hope that does not have to happen."
TRUMP'S APRIL 2 TARIFF DECISION AND POSTPONEMENT STATEMENTUS President Trump announced the reciprocal tariff rates that will be applied to US trading partners on April 2, which he described as "liberation day." Stating that the basic tariff rate will be 10 percent, Trump shared the customs duty rates that vary by country, taking into account the tariffs and non-tariff barriers applied by other countries.
Trump announced on April 9 that additional tariffs for all trading partners except China would be suspended for 90 days.
ECONOMIC SLOWDOWN AND DEMAND CONCERNSExperts say the Washington administration's tariff decisions will slow down economic growth in the short term and suppress energy demand, which will in turn suppress prices.
TECHNICAL LEVELSIt is stated that technically, $77.48 can be monitored as resistance and $61.11 as support for Brent oil.
BirGün
