Oil Prices Continue to Trigger Inflationary Worries

Oil Prices Continue to Trigger Inflationary Worries

Oil Prices Continue to Trigger Inflationary Worries

Starting the new week at the highest level of the last 7 years, the upward momentum in crude oil prices continues to be maintained. Although the crude oil stocks announced by the American Institute increased by 5.2 million barrels, much above the expectations, we see that this trend did not deteriorate. Also, after the increase of 6.1 million barrels in official crude oil stocks in the USA yesterday, the activity above 81.0 dollars in commodities continues to be preserved. On the crude oil side, especially the downward revision of OPEC+'s oil demand growth forecast for 2021 was among the remarkable developments. OPEC+'s oil production stood at 490 thousand barrels for September.

While Russian President Putin shared his expectation that crude oil prices could rise to the level of 100 dollars, Russian Energy Minister Novak made a statement that oil demand in 2021 could increase by 6 million barrels. The International Energy Agency (IEA), on the other hand, revised its forecast for global oil demand for this year and next year upwards, noting that the ongoing energy crisis will cause an increase in oil consumption. Following this development, we saw that the upward momentum in oil prices continued to be maintained.

If we look at the general picture of the indices on the US side, there was a slight weakening in the risk appetite after the rising inflation figure, while the FOMC minutes pointed out that the bond buying program would start as soon as November and December. It is seen that the positive balance sheets announced especially in the USA support the rise potential on the side of crude oil prices by keeping the risk appetite high.

Following these developments, in the continuation of the outlook above the 80.60 level in the commodity, which has been on the rise for a while, the buying potential may reach the level of 85.85 with the resistance of 83.40. However, in a possible pullback potential, the 80.60 support level must be crossed first. Below this level, the 78.30 and 75.80 support levels are important transition zones that remain current.

Previous News

 Nasdaq is on the way
15 October 2021 13:22

Nasdaq is on the way

Next News

whats-next-for-reef-and-holo
14 October 2021 13:20

whats-next-for-reef-and-holo