Oil prices drop of over 9% this week.
Concerns over an economic slowdown weigh on oil markets
OPEC+ maintained its production policy, with Russia and Saudi Arabia continuing voluntary production cuts.
US oil inventories decreased by 2.2 million barrels, influencing oil prices, which are currently trading around $81.30 per barrel.
Economic events influencing oil movements:
Oil prices have seen a sharp decline during this week's trading, dropping by over 9%. They reached their highest point at around $90.00 and are currently hovering around $81.30. This drop is attributed to decreased demand and concerns about an economic slowdown.
During its meeting last Wednesday, the OPEC+ Joint Ministerial Monitoring Committee decided to maintain the group's production policy without any changes.
Alexander Novak, the Deputy Prime Minister of Russia, stated that the voluntary production cuts by Russia and Saudi Arabia have contributed to bringing stability to the oil markets.
The Saudi Ministry of Energy affirmed its commitment to voluntarily reduce its oil production by one million barrels per day until the end of this year. Meanwhile, Russia announced that it would continue to reduce its crude oil exports by 300,000 barrels per day.
In terms of data, the Energy Information Administration reported a decrease in US oil inventories by approximately 2.2 million barrels, surpassing market expectations of a 0.1 million barrel decrease.
Oil prices began the day with a slight decline, trading near the $81.30 per barrel level.
Key technical levels influencing oil movements:
After breaking below the support level of $88.00, the oil's trend has turned bearish, extending the decline to trade around $81.30. It is likely that this downturn will continue, testing the support level at $78.00. If this support level holds, we may see an upward correction and a test of the $84.00 level.
On the other hand, if oil rises from its current levels, it may encounter resistance at $82.50. If it surpasses this level, the upward momentum may extend slightly to test the resistance level at $83.80.