Concerns about high interest rates caused a drop in oil prices.

A barrel of Brent oil is quoted at $90.97 in international markets.

The price of a barrel of Brent oil, which rose to $92.73 yesterday, ended the day at $91.88. The price of a barrel of Brent oil decreased by 0.99 percent compared to today’s close at 9:42 a.m., reaching $90.97. At the same time, West Texas Intermediate (WTI) crude oil sold at $88.76 per barrel.

The drop in prices was influenced by concerns that central banks in developed economies would keep interest rates at high levels for a long time and this would lead to a decline in global oil demand.

CONTINUED HIGH INTEREST RATES MESSAGES FROM THE FED AND ECB

While expectations are rising that the US Federal Reserve (Fed) may raise interest rates again before the end of the year, banking officials continue to signal in their guidance that interest rates will remain at lower levels. high for longer than expected.

Minneapolis Federal Reserve President Neel Kashkari said that most Fed members think another interest rate increase will be necessary this year, and that he is one of those members.

Chicago Federal Reserve President Austan Goolsbee also said interest rates appear to stay high longer than markets expect.

Interest rate decisions from central banks across Europe were announced last week. The emphasis that banks will keep interest rates at high levels for a long time is striking.

The President of the European Central Bank (ECB), Christine Lagarde, said yesterday at the session of the Economic and Financial Affairs Committee of the European Parliament (EP) entitled “Monetary Dialogue” that inflation continues to decline, but is expected to remain high for a long time.

Lagarde noted that the ECB will keep interest rates at current levels as long as necessary.

MOODY’S BLOCK WARNING TO US

International credit rating agency Moody’s also reported that a partial shutdown appears likely in the United States if a bill to finance public institutions is not passed before the end of September.

The statement highlighted that a long-term shutdown would be “devastating” for both the US economy and financial markets.

On the other hand, supply concerns caused by production cut decisions by the world’s largest oil producers, Saudi Arabia and Russia, continue to drive prices higher.

It is stated that technically for Brent oil the range between $91.34 and $91.73 can be considered resistance and the range between $90.95 and $90.56 as support zone. (AA)